By Justin Pritchard. Banking/Loans Expert
Justin Pritchard helps consumers navigate the world of banking.
A bank draft is traditionally a check drawn on a bank’s funds, such as a cashier’s check.
The term bank draft is also used for paying bills: this refers to an electronic transfer from your bank account to your service provider (such as an electric utility provider, or an online merchant).
Basic Bank Drafts
They are also used in international trade.
The term 'cashier’s check ' is sometimes used instead of bank draft.
Bank drafts are more secure for sellers because the funds are guaranteed by the bank that issued the draft. If you write a personal check, your check might or might not bounce. Bank drafts, on the other hand, won't bounce unless the bank goes belly-up (assuming the draft is a legitimate document -
see below). Banks only issue bank drafts after they’ve taken money from your account or you've handed over cash - so sellers have a better chance of getting paid.
Are Bank Draft Payments Safe?
How to Get One
How can you get a bank draft? Ask your bank (note that in the US you'll want a "cashier's check" but other countries use the term "bank draft"). You can walk in and work with a teller, or you might be able to request one online. Your chances are best if you go through a bank that you currently have an account with - some banks only provide this service to customers. However, if you're away from home or you don't have a bank account, you can always try walking in and asking (or you could try a money order. which is similar but less secure).Source: banking.about.com