Bank Drafts

The concise guide to international bank drafts

Send money overseas safely and inexpensively with a bank draft.

If you’re looking for a safe, secure and reasonably affordable way to transfer money overseas, you may wish to look into the possibility of taking out an international bank draft. Also known as a bank cheque, bank drafts are accepted in most countries and are created in the currency of the destination where they are sent.

Although there are much quicker methods of sending money overseas, international bank drafts still offer several benefits to consumers. If time is not a factor when you’re transferring money to someone overseas, bank drafts can be perfect.

International Money Transfer Offer

TorFX International Money Transfers

  • No extra fees
  • Fix your exchange rate for up to 2 years
  • Price-match guarantee
  • Personal account manager

International Money Transfer Offer

TorFX has no charges and 0% commission that lets you save on fees with a competitive exchange rate.

  • Minimum transfer amount: $2,000
  • Online transfer fee: $0
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The transfer services below are not bank drafts, but rather allow you to make bank transfers which can be received by your recipient in their bank account or as cash.

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
AUD 1 2 days AUD 9.00 0.657 USD
6,566
Transfer to over 99 countries via online banking, phone banking or through an ANZ bank branch. Go to site Show details
AUD 2,000 1 day AUD 0.00 0.676 USD
6,757
TorFX guarantees to match any competitor's exchange rate. Conditions apply.
Send money overseas in 30+ currencies with competitive rates for transfer amounts over $2,000.
Go to site Show details
AUD 3,000 1 day GBP 20.00 0.676 USD
6,748
Global Reach will match any competitor's exchange rates. Conditions apply.
No transfer fee when transferring more than £10,000 or equivalent. Send money in over 130 currencies. No maximum transfer amount.
Go to site Show details
AUD 2,000 1 day AUD 0.00 0.676 USD
6,757
Better exchange rates for Finder customers.
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.
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AUD 2,000 1 day AUD 0.00 0.676 USD
6,757
SendFX guarantees to match any competitor's exchange rate. T&Cs apply.
Fee-free transfers in 30+ currencies to over 200 countries.
Go to site Show details
AUD 250 1 - 2 days AUD 0.00 0.676 USD
6,757
$0 transfer fees for Finder customers.
No-maximum limit transfers with competitive exchange rates for 100+ currencies. No transfer fee over AUD$10,000.
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AUD 2,000 1 day AUD 0.00 0.676 USD
6,757
BFX can help you send fee-free transfers to 30+ currencies. Go to site Show details
AUD 5 1 - 2 days EUR 3.00 0.672 USD
6,715
Special offer: Pay zero fees on your first 5 transfers.
Get bank-beating exchange rates and fast transfer times on 15+ popular currencies.
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AUD 1 Within an hour AUD 3.99 0.67 USD
6,700
An online money transfer service with cash pickup, bank account to bank account and airtime transfers available. Go to site Show details
AUD 200 1 day AUD 0.00 0.673 USD
6,730
Low minimum transfer amount of just AU$200, with no set-up fees or transfer fees. Go to site Show details

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The "Rate" and "Amount Received" displayed are indicative rates that have been supplied by each brand or gathered by Finder.

Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention "Finder" before you commit to a brand.

How does a bank draft work?

A bank draft is effectively a cheque from a financial institution, which means the funds for the transaction are withdrawn from the institution rather than from the cheque drawer’s account.

This offers an important benefit over an ordinary cheque from an individual. The funds from a normal cheque are not withdrawn from the drawer’s account until the cheque is cleared, which means there may not be sufficient funds available when the cheque is cashed and it may therefore bounce.

With a bank draft, however, when a person requests one they must immediately transfer the funds from their account to cover the amount of the cheque. This adds a crucial extra level of security over a normal cheque.

Drafts can be drawn in the foreign currency you choose and are available for personal or business use.

Make your comparison of bank drafts that much more effective

  • Fees. This is the most important factor to look at when comparing bank drafts. Look at the different fees charged for obtaining a draft and see if you could save money with a different provider.
  • Available currencies and countries. Speak to your bank or financial institution about the currencies in which you can obtain a bank draft and the countries to which you can send them.
  • Processing time. Once you apply for a draft, how long will it take for your financial institution to process it?
  • Application options. It’s also a good idea to compare the different methods available when applying for a bank draft. You’ll typically need to visit a branch or apply in writing.

Weigh up the pros and cons of a bank draft

Pros

  • Accepted in most parts of the world. International bank drafts are accepted in the majority of countries around the globe.
  • Inexpensive. Although you will have to pay a fee when you apply for an international bank draft, drafts are still a relatively cost-effective method of sending funds overseas.
  • In local currency. As the cheque is made out in the local currency where it will be sent, it does not require conversion and is therefore able to be banked quicker than a cheque written in Australian Dollars.
  • Secure. Bank drafts must be deposited into a bank account and cannot be cashed.

Cons

  • Slow. Bank drafts typically take several weeks to process, so they’re only a viable option where the speed of the transaction is not a concern.

What are the risks?

Keep an eye out for the following risks when it comes to bank drafts.

  • Funds not arriving in time. As mentioned, international bank drafts are quite a slow method of sending money overseas. If you need to send funds urgently, do not bother applying for a bank draft.
  • Fees. As with any financial product or service, it’s important that you’re aware of the fees and charges that apply to your bank draft. This can save you a lot of money in the long run.
  • Your country of choice may be unavailable. Make sure to check which countries and currencies your bank will allow you to send a draft in and to.

Read answers to your most common questions about bank drafts

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International Money Transfer Offers

Important Information*
Logo for ANZ International Money Transfer
ANZ International Money Transfer

Transfer to over 99 countries via online banking, phone banking or through an ANZ bank branch.

Logo for TorFX International Money Transfers
TorFX International Money Transfers

TorFX guarantees to match any competitor's exchange rate. Conditions apply.
Send money overseas in 30+ currencies with competitive rates for transfer amounts over $2,000.

Logo for Global Reach (formerly FC Exchange) International Money Transfers
Global Reach (formerly FC Exchange) International Money Transfers

Global Reach will match any competitor's exchange rates. Conditions apply.
No transfer fee when transferring more than £10,000 or equivalent. Send money in over 130 currencies. No maximum transfer amount.

Logo for WorldFirst International Money Transfers
WorldFirst International Money Transfers

Better exchange rates for Finder customers.
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.

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8 Responses

  1. Default Gravatar
    KevinApril 28, 2017

    I received an International Demand Draft from the Malaysian Government payable to me in Australian Dollars. Since I have a bank account with NAB, I deposited at an NAB branch last Friday (21st April 2017). The funds were shown in the Current Balance but not in the Available Balance, which I totally understand. After about 3 days, the funds were fully deposited and was shown in the Available Balance.

    However a couple of days ago, the whole amount was Credited Out of my bank account. I called NAB immediately to ask what the heck happened? No one could give me an answer and said it was “dishonoured”, to which I responded as impossible! As a friend of mine received the same payment from the Malaysian Government in Foreign Demand Draft and paid into her bank, which had no issue.

    Anyway NAB said they’ll raise an investigation and probably return the Bank Draft to me. Are they serious?

    • Avatarfinder Customer Care
      DeeMay 4, 2017Staff

      Hi Kevin,

      Thanks for your question.

      There are several reasons why a demand draft may be dishonored. You may want to directly contact the issuing bank in Malaysia, or the person or agency that issued you the demand draft to verify the reason why it was dishonored.

      Cheers,
      Anndy

  2. Default Gravatar
    NirmalMarch 29, 2017

    I am located in India .Can I prepare a bank draft bankers cheque payable inAustralian Dollars in the name of an individual who is having a bank account there.Objective is making to some token gift an expression and affection from relatives and friends. with 400Dollars for birthday or marriage anniversary.

    • Avatarfinder Customer Care
      MayMarch 31, 2017Staff

      Hi Nirmal,

      Thank you for your inquiry.

      You can actually send a bank cheque payable in Australian dollars so long that your bank in India allows that transaction. You’d be best to get in touch with your bank in India to confirm how you can send a cheque to Australia.

      Cheers,
      May

  3. Default Gravatar
    NeenaFebruary 27, 2017

    I recd a foreign bank draft after 4 months of the date of issue. Can it still be presented in Indian bank in india. It’s in Indian currency.

    • Avatarfinder Customer Care
      DeeFebruary 28, 2017Staff

      Hi Neena,

      Thanks for your question.

      Bank drafts are guaranteed and have secured funds so they don’t generally expire, unlike checks. But depending on the issuing bank, some drafts may have expiration date of like 6 months.

      If you have a bank account in India, you can deposit it to your account. It cannot be cashed.

      Cheers,
      Anndy

  4. Default Gravatar
    KateJanuary 16, 2017

    Hi – I’m wondering if international bank drafts can expire. For example, I found an old bank draft (15 months old) in a birthday card, is it still be valid?
    It was drawn on a Westpac account overseas and it is in AUD.

    Thanks!

    • Avatarfinder Customer Care
      MayJanuary 17, 2017Staff

      Hi Kate,

      Thanks for your question.

      A bank draft or bank cheque with Westpac usually expires after six months. Bank cheques are valid for 6 months from the date of purchase.

      Cheers,
      May

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