Bank Draft

Filed Under »
Dictionary Says

Definition of 'Bank Draft'

A type of check where the payment is guaranteed to be available by issuing bank. Typically, banks will review the bank draft requester's account to see if sufficient funds are available for the check to clear. Once it has been confirmed that sufficient funds are available, the bank effectively sets aside the funds from the person's account to be given out when the bank draft is used.
Investopedia Says

Investopedia explains 'Bank Draft'

Bank drafts are normally involved in transactions involving large sums of money and/or situations where trust can be an issue. 

Suppose you are purchasing a new car, showing up with a bank draft allows the dealership the assurance that you have enough money to purchase the vehicle and that your check will not bounce.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Check

    A written, dated ...

  2. Cashier's Check

    A check written ...

  3. Demand Draft

    A method used by ...

  4. Bounced Check

    A slang word for ...

  5. Certified Check

    A type of check ...

  6. Checking Account

    A transactional ...

  7. Regional Check Processing Center - RCPC

    A local Federal ...

  8. Share Draft

    A type of draft ...

  9. Share-Draft Account

    Share-draft ...

  10. Straight Credit

    A special type ...

Articles Of Interest

  1. Take Control Of Your Credit Cards

    The plastic in your wallet doesn't have to hurt your finances. Learn how to manage it responsibly.

  2. Credit, Debit And Charge: Sizing Up The Cards In Your Wallet

    Not all plastic is equal! Learn the difference between the three kinds, and how each can affect your finances.

  3. Compare Local Interest Rates

    Search and compare the best checking and savings rates nationwide from Bankrate.com. Click Here!

  4. Top 7 Most Common Financial Mistakes

    Choose fortune over disaster by avoiding these money traps.

  5. The Beauty Of Budgeting

    Make it to the end of the month, before you run out of money.

  6. Analyzing A Bank's Financial Statements

    A careful review of a bank's financial statements can help you identify key factors in a potential investment.

  7. Are credit cards and debit cards considered debt instruments?

  8. What methods can be used to fund a forex account?

  9. Clearing Up Tax Confusion For College Savings Accounts

    Put your kids through school without being hounded by the tax man.

  10. How To Invest On A Shoestring Budget

    Money is tight when you're young, but don't let that stop you from pursuing future riches.
Sponsored links

comments powered by Disqus
Hot Definitions

  1. Love Money

  2. Shark Watcher

  3. Judo Business Strategy

  4. Dogs Of The Dow

  5. Chinese Hedge

  6. X-Mark Signature

Recommended
Loading, please wait...
See More »
Trading Center