Bank Draft Fees by Bank
| Bank | Bank Draft Fee | Certified Cheque Fee | Free with Account Tier |
|---|---|---|---|
| RBC | $8.50 | $15.00 | VIP Banking ($16.95/mo) |
| TD | $7.50 | $15.00 | All-Inclusive ($16.95/mo) |
| Scotiabank | $8.75 | $15.00 | Ultimate Package ($16.95/mo) |
| BMO | $8.50 | $15.00 | Premium Plan ($16.95/mo) |
| CIBC | $7.50 | $10.00 | Smart Premium ($16.95/mo) |
| National Bank | $8.00 | $12.50 | Premium account |
| Desjardins | $7.50 | $12.00 | Premium package |
How to Get a Bank Draft
| Step | Details |
|---|---|
| 1. Visit your bank branch | Bank drafts cannot be issued online or by phone |
| 2. Bring government photo ID | Driver’s licence or passport |
| 3. Provide payee details | Full legal name of person or company |
| 4. Specify the amount | Exact dollar amount (no changes after issued) |
| 5. Bank withdraws funds immediately | From your chequing or savings account |
| 6. Receive the bank draft | Physical document, treat like cash |
| Processing time | 15–30 minutes in branch |
Bank Draft vs Other Payment Methods
| Feature | Bank Draft | Certified Cheque | Wire Transfer | e-Transfer |
|---|---|---|---|---|
| Guaranteed funds | Yes (bank’s funds) | Yes (verified funds) | Yes | Yes (up to limit) |
| Cost | $7.50–$10 | $10–$15 | $25–$80 | $0–$1.50 |
| Available online | No (branch only) | No (branch only) | Yes (online banking) | Yes |
| Speed | Immediate issuance | Immediate issuance | 1–5 business days | Minutes |
| Maximum amount | Unlimited | Unlimited | Bank-dependent | $3,000–$25,000/day |
| Can be cancelled | Yes (with fee, $15–$25) | Yes (return original) | Very difficult | Before accepted |
| Risk of fraud | Low (but forgeries exist) | Low | Very low | Very low |
| Common use | Real estate, vehicles | Large payments | International, real estate | Day-to-day |
| Accepted for real estate deposits | Yes (preferred) | Yes | Yes | Sometimes (smaller amounts) |
When to Use a Bank Draft
| Situation | Best Payment Method | Why |
|---|---|---|
| Real estate deposit ($25K–$100K+) | Bank draft | Preferred by real estate lawyers, immediate, guaranteed |
| Vehicle purchase (private sale) | Bank draft | Seller confidence, proof of payment |
| Tuition payment ($5K–$30K) | Bank draft or EFT | Schools often accept both |
| Landlord deposit (first/last month) | Bank draft or certified cheque | Shows financial credibility |
| Government fees (immigration, etc.) | Bank draft | Often required by government |
| Investment account funding ($50K+) | Wire transfer | Fastest for large brokerage deposits |
| Day-to-day purchases | e-Transfer | Free, instant, convenient |
| Small amounts ($500 and under) | e-Transfer | No need for branch visit |
Cancelling a Bank Draft
| Scenario | Process | Cost | Timeline |
|---|---|---|---|
| Draft not yet cashed | Return to issuing branch with original | $15–$25 fee | Same day (refund in 1–2 days) |
| Draft lost or stolen | Request stop payment + indemnity bond | $25–$50 + bond premium | 90 days hold typical |
| Draft already cashed | Cannot cancel | N/A | N/A |
| Draft made out incorrectly | Return to branch for reissue | May charge new fee | Same day |