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what is a bank draft a bank draft is a cheque that a bank provides of its customer the cheque has been drawn by the bank itself as the cheque has already been paid for the bank guarantees it the bank draft typically contains the name of the payee the payee is the person who receives the money we can also call this kind of check a bankers draft bank check or tellers check if i present a personal check it draws money from the bank account of the checks owner if the owner does not have sufficient funds to cover the amount written on the check it will bounce in the case of a bank draft this cannot happen because the bank has already withdrawn the amount written on the check that is why people trust bank drafts much more than personal checks if i ask my bank for a bank draft it transfers the amount on the draft from my account first i also have to pay a fee and any additional administration charges how much they are depends on the bank when the payee presents the bank draft they receive
