Bank Checks

"body">the signature of the drawer (in this case, the bank
A bank check is a guaranteed check issued by themanager).
bank on the bank's own account, after a purchaserLike a regular check, a bank check is typically valid
(usually a depositor in the bank) "buys" it. It isfor six months after the date of issue (except in
guaranteed because it is as good as cash - thespecial cases when the validity date is otherwise
purchaser of the check pays the bank the sumindicated).
indicated on the check (either directly or throughAnyone can apply for a bank check, but the process
account debit), so there is no way the check willis made much easier if you are already a depositor at
bounce.the bank where you want to buy a bank check. In
Bank checks are very handy when you need to paythis case, they simply debit the amount of the check
a large amount of money but do not want to carryfrom your account, write up the check, give you a
cash. Most purchasers of bank checks use them toreceipt and the check, and send you on your way. If
pay for big acquisitions like properties, to pay taxes,you do not have an account in the bank you want to
to close business deals, etc.buy from, you can pay them upfront, and they can
A bank check typically looks like a regular check,immediately write you a check. Note, however, that
except that it is bank issued and does not depend onbanks usually impose service charges for this request.
anyone's account. It also has the basic elements ofThe service charge varies, but it is typically only a
the regular check: a date and place of issue, a checkfew dollars (or more, depending on bank regulations
and account number, a clearly written payee name, aor the amount of the check).
clearly written amount of currency, and of course,