A bank draft is a check written by your bank using its own money, not yours
When you ask your bank for a draft, the bank writes a check to whoever you name. The bank then takes the full amount from your account right away and holds it until the check clears. Because the bank's own name appears as the writer of the check, the person receiving it knows the money is already set aside — the check will not bounce.
This is different from a personal check, where you write the check yourself and the recipient has to trust that you have the money in your account. With a bank draft, that trust is built in. The bank has already verified the funds exist and removed them from circulation.
Bank drafts are also called cashier's checks in most places. Some banks use the terms interchangeably; others make small distinctions between them. For your purposes, they work the same way: the bank guarantees the payment.
Key Takeaways
- A bank draft is a check written and may provide by your bank, not by you, so the recipient knows the money is certain.
- Your bank removes the full amount from your account when ready when you request the draft, even though the recipient may not cash it for days or weeks.
- Bank drafts cost a small fee — usually between $5 and $15 per draft, though some banks waive the fee for customers with certain account types.
- You need to know the exact amount and the correct name and address of the person or business receiving the payment before you go to the bank.
- A bank draft cannot be stopped once it is issued, so you cannot cancel it the way you can cancel a personal check.
When you would use a bank draft instead of a personal check
You use a bank draft when the person or business receiving the money needs certainty that the check will clear. A landlord holding a security deposit, a car dealer, a title company closing a home sale, or a government agency collecting a fine often ask for a bank draft instead of a personal check.
Bank drafts are also common when you are sending money to someone you do not know well or to a business far away. If you are buying something from a private seller online or paying a contractor you found through a referral, the seller may ask for a draft to reduce their risk.
You might also use a bank draft if you do not have a checking account yet, or if your checking account is new and you do not have a supply of personal checks printed. A bank draft works even if you have never written a check before.
How to get a bank draft from your bank
Visit your bank in person or call the branch where you hold your account. Tell them you need a bank draft and provide the exact amount, the name of the person or business the check should be made out to, and their mailing address if you have it. Some banks let you request a draft online or by phone, but most require you to come in.
The bank will ask you to sign a form authorizing the draft. They will then write the check, take the money from your account, and hand you the draft. The whole process usually takes 10 to 20 minutes if you are in the branch. If you call ahead, the bank can have it ready when you arrive.
You will pay a fee for the draft. This fee varies by bank — some charge $5, others charge $15 or more. A few banks waive the fee if you have a premium account or if you maintain a high balance. Ask about the fee before you request the draft.
What happens after you receive the bank draft
Once you have the draft in hand, you can mail it, deliver it in person, or give it to someone else to deliver. The recipient will deposit or cash it at their own bank. The check will clear within one to three business days, just like a personal check.
The money has already left your account, so you do not have to worry about whether you will have the funds when the recipient deposits it. From your bank's perspective, the transaction is complete the moment they hand you the draft.
If the recipient loses the draft or it gets damaged in the mail, you will need to contact your bank and request a replacement. Some banks can issue a replacement quickly; others may require you to wait a certain number of days to make sure the original draft was not cashed. This process varies by bank, so ask about their policy when you get the draft.
Why a bank draft costs money and cannot be cancelled
Your bank charges a fee because they are taking on the risk and doing the work of guaranteeing the payment. They have to verify your account has the funds, remove the money, write and sign the check, and keep records of the transaction. The fee covers these costs.
You cannot cancel a bank draft the way you can cancel a personal check. Once the bank has issued it, the money is committed. If you change your mind or make a mistake, you cannot straightforward call the bank and stop payment. This is why the bank requires you to be certain about the amount and the recipient before you request the draft.
If you need to cancel a draft because the recipient never cashed it or because you made an error, you will have to contact your bank and ask them to investigate. They may be able to recover the funds, but this can take weeks and may involve additional fees. It is much easier to get the details right the first time.
Bank drafts versus other ways to send money
A personal check is cheaper or free, but the recipient has to trust that your account has the money. It can take several days to clear, and you can cancel it if needed.
A wire transfer moves money directly from your bank account to another bank account, usually within hours. It costs more than a draft (often $15 to $30) and cannot be reversed once sent. Wire transfers are faster but riskier if you make a mistake with the account number.
A money order is a prepaid check you buy at a post office, grocery store, or bank. It costs $1 to $5 and works like a bank draft — the issuer guarantees the payment. Money orders are useful if you do not have a bank account, but they have lower limits (usually $500 to $1,000 per order).
A certified check is a personal check that your bank stamps to confirm the funds are there. It costs less than a bank draft but is not quite as may provide — the bank certifies the funds at the moment you request it, but the check still comes from your account.
What to know before you request a bank draft
Have the exact amount ready. Do not round up or estimate — the draft must be for the precise sum. If you are not sure of the amount, ask the recipient before you go to the bank.
Get the correct name and address of the person or business receiving the payment. Ask them how they want their name spelled and whether the check should go to an individual or a business name. A misspelled name can cause problems when the recipient tries to deposit the check.
Bring your ID and your debit card or checkbook so the bank can verify your account. If you are requesting a draft for someone else's account (with their permission), bring their ID as well.
Ask about the fee and whether your account type qualifies for a waiver. Some checking accounts include a certain number of free drafts per month or year.
Frequently Asked Questions
Can I get a bank draft if I do not have much money in my account?
No. Your bank will only issue a draft if your account has at least the full amount of the draft available right now. The bank removes the money from your account when ready, so you must have it on hand.
How long does a bank draft take to clear?
A bank draft usually clears within one to three business days, the same as a personal check. The recipient's bank may hold it slightly longer if they are depositing a large amount, but this is rare.
What if I made a mistake on the bank draft?
Contact your bank right away. If the draft has not been cashed, they may be able to stop it and issue a new one. If it has already cleared, you will need to ask the recipient to return it or work out a refund with them. This is why it is important to double-check the amount and recipient name before you leave the bank.
Is a bank draft safer than a wire transfer?
They are safe in different ways. A bank draft is safer if you are worried about giving out your bank account number, since the recipient only sees the check. A wire transfer is safer if you need the money to arrive the same day. Both are may provide by the bank, so the recipient will not lose money either way.
Can I request a bank draft over the phone?
Some banks allow phone requests, but most require you to visit the branch in person or use online banking if your bank offers it. Call your bank to ask what methods they support. If you need the draft quickly, coming in person is usually fastest.