# Sending bank draft in the post ... safe?



## Alun (2 Mar 2010)

I want to make a one off overpayment from my AIB current account to my AIB mortgage, keeping the monthly payments the same and reducing the term. Seeing as this appears not to be the default action in the case of an overpayment, I need to communicate this to them at the same time I make the payment.

According to the mortgage bank I have two options, firstly visit the bank in person and lodge the amount in question to my mortgage account there and then, and at the same time give them a letter to fax to the mortgage bank giving them the instructions, which seems fraught with problems to me, or secondly get a bank draft and send it to them by post together with the letter which to me on the face of it seems a better way of making sure the connection is made between the payment and the desired outcome.

Now, I don't really know much about bank drafts (lived in mainland Europe for most of my life before moving here) but I would like to know what the potential pitfalls are with something like this. Are bank drafts made out to a particular payee, just like cheques? What happens if it gets lost in the post or worse, stolen? Would there be any point in sending it by registered post?


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## Vincenzo (2 Mar 2010)

Arrange a meeting with your bank and deal with them face to face . 
This way you hand over the draft when you are satisfied they will do with it as you say. No fear of it being lost or stolen.

Could you not have just set up an overpayment option fir the amount you want and cancel it when your fund runs out.


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## NovaFlare77 (2 Mar 2010)

I haven't sent bank drafts in years, but my recollection is that they made out to a particular payee.

I would suggest using registered post as you can easily track the status online and request a copy of the signature, which may be handy if the bank say that they have no record of receipt.

Registered post also includes insurance up to €320 and you can pay more to insure it up to a value of €2,000. See An Post's website here - http://www.anpost.ie/AnPost/MainContent/Business+Customers/Sending+Mail/Security/Registered+Post.htm. I don't have any experience of claiming on the insurance however, so I'm not sure how hard or easy it is to do so.


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## Alun (2 Mar 2010)

Vincenzo said:


> Arrange a meeting with your bank and deal with them face to face .
> This way you hand over the draft when you are satisfied they will do with it as you say. No fear of it being lost or stolen.


Thing is the retail side of AIB and the mortgage side seem to be two separate entities. I'm not even sure the mortgage people even have a physical on-street presence where I could go to and do such a thing.


> Could you not have just set up an overpayment option fir the amount you want and cancel it when your fund runs out.


Well, we tried to arrange this a while back on a month by month basis rather than as a lump sum, but if we wanted to have the overpayment reduce the term, we'd apparently have had to write a letter every single month advising them of this which is a PITA. There were also implications for the mortgage repayment insurance as well if I recall correctly.


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