by Bill Witzgal
Bank Drafts vs. Money Orders is perhaps confusing to some people. Both of these are secure means of paying an individual. They are both generally accepted as good as cash. They usually can not be redeemed by someone other than the person to whom they are made out. The difference though small may well be important at times.
Money orders can be issued from the post office and in are drawn against the post office. They can also be issued by banks and in that case are guaranteed by the bank.
A money order might be purchased from almost any bank or any post office which makes it very convenient to buy. The costs for them vary with the post office according to where it is to be sent and what currency it is sent in. The rates charged by banks are around the same as the post office charges, or sometimes a bit lower and range from 4 to 6 CAD.
Bank drafts are also paid in advance and therefore considered as good as currency. However Canadian drafts can be issued in almost any currency the person wishes and are usually most useful for sending larger payments. In the US the bank draft is usually known as a cashier's check. These are specially watermarked and printed to help deter counterfeiting since they are so commonly accepted as cash and a person's account may be credited instantly with the draft amount.
The charge for issuing a bank draft is around the same as a money order. A draft might be most useful when amounts over 1000 CAD/USD need to be sent. With larger payments a draft is a valid way to send funds securely.
Both of these means of payment are much more secure ways to pay or send money. They can only be cashed by the person whose name is on the draft or money order, whereas cash can be used by anyone if the payment is waylaid or misplaced. If either of these has gone astray then it might be replaced, but this depends on the circumstances.
Both of these pre-paid methods are recognized both at home and abroad. Both of them are also easily obtained from convenient locations and the fees are very minimal. While either will serve admirably for smaller amounts only the draft is usable for larger payments. - 41115
(http://www.canadabanks.net/default.aspx?article=Money+Orders+and+Bank+Drafts) Bank Drafts are issued by any Bank in Canada. Learn more about (http://www.canadabanks.net/Banking_Terms.aspx) banks and banking in Canada.
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New Unique Article!
Title: What Is A Money Order
Author: Bill Witzgal
Email: smartuaw@yahoo.com
Keywords: bank draft,money order,checking account,savings account,bank account,loan,mortgage,credit,banking,bank,money,insurance,personal finance,finance
Word Count: 391
Category: Finance:Credit
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