A bank draft is a payment method where the bank itself guarantees the money, not you
A bank draft is a check drawn on the bank's own account rather than your personal or business account. The bank sets aside the money when you request the draft, so the recipient knows the funds are already there. This is different from a regular check, where the recipient has to trust that your account has enough money when they try to cash it.
You pay the bank a fee (usually $5 to $15, depending on the bank) and provide the amount and payee name. The bank then issues a draft that looks like a check but carries the bank's promise to pay. Because the money is may provide, bank drafts are often required for large transactions where the recipient needs certainty—real estate closings, vehicle purchases, legal settlements, or payments to government agencies.
Key Takeaways
- A bank draft is a check issued by the bank itself, not by you, so the recipient knows the money is may provide to be there.
- You must have the funds in your account when you request the draft, because the bank sets the money aside when ready.
- Bank drafts cost between $5 and $15 per draft and typically take one business day to issue.
- Bank drafts cannot be stopped once issued, unlike regular checks, so you cannot cancel or change the payment after the fact.
- A bank draft is safer for the recipient but less flexible for you than a regular check or electronic transfer.
How to get a bank draft from your bank
Visit your bank in person or call the branch where you hold your account. You will need to tell them the exact amount, the name of the payee (the person or organization receiving the money), and sometimes the payee's address. Bring a valid ID and your account information.
The bank will confirm you have enough money in your account to cover the draft plus the fee. They will then deduct the full amount from your account and issue the draft, usually on the same day or within one business day. Some banks allow you to request a draft online or by phone, but most require you to pick it up in person or have it mailed to you.
Keep the receipt the bank gives you. It shows the draft number, amount, and date issued. If the draft is lost or stolen before the payee cashes it, you will need this receipt to request a replacement.
Bank drafts versus cashier's checks and regular checks
| Feature | Bank Draft | Cashier's Check | Regular Check |
|---|---|---|---|
| Who guarantees the money | The bank | The bank | You (the account holder) |
| Money set aside when issued | Yes | Yes | No |
| Can be stopped after issue | No | No | Yes |
| Typical cost | $5–$15 | $5–$15 | Free (usually included with account) |
| Time to issue | Same day or 1 business day | Same day or 1 business day | when ready |
| Recipient confidence | Very high | Very high | Lower |
A cashier's check is nearly identical to a bank draft—the bank guarantees the funds and sets the money aside. The main difference is that a cashier's check is drawn on the bank's account in your name as the purchaser, while a bank draft is drawn directly on the bank's account. For practical purposes, they are treated the same way by recipients and carry the same level of security.
A regular check from your account is cheaper and faster, but the recipient cannot be certain the money is there until the check clears. This is why sellers and service providers often refuse regular checks for large amounts or ask for a bank draft or cashier's check instead.
Why recipients ask for a bank draft instead of a regular check
When someone asks you to pay by bank draft, they are protecting themselves against a check that bounces. If you write a regular check and your account does not have enough money, the check fails and the recipient gets nothing—they then have to contact you to collect the payment, which costs them time and sometimes money in collection fees.
With a bank draft, the recipient knows the money is already set aside at the bank. The draft will clear, and they will have the funds. This is especially important in real estate transactions, where the amounts are large and the timing is critical. Courts and government agencies also often require bank drafts for the same reason—they need certainty that payment will go through.
What happens if you lose a bank draft or it is stolen
Unlike a regular check, a bank draft cannot be easily replaced or stopped. Once the bank issues it, the money is committed. If the draft is lost or stolen before the payee cashes it, contact your bank when ready with the receipt you received when you got the draft.
The bank can place a stop on the draft if it has not been cashed yet, but this process is not may provide to work quickly. You may have to wait 30 to 90 days for the bank to confirm the draft was not cashed before they will issue a replacement. During this time, the money remains out of your account. Some banks charge a fee for this process, typically $15 to $30.
To avoid this situation, treat a bank draft like cash. Do not mail it unless you have to, and if you do, use tracked mail. Hand it directly to the recipient whenever possible, and ask them to confirm they received it.
Bank draft fees and where to get one
Most banks charge between $5 and $15 per bank draft. Some banks include a small number of free drafts with certain account types (such as premium checking accounts), but most charge a fee each time. Credit unions often charge less than traditional banks, sometimes $3 to $8 per draft.
You can get a bank draft from any bank where you hold an account. You do not have to use the branch where you opened the account—any branch of your bank can issue one. If you bank online with a bank that has no physical branches, you may have to request the draft by phone or mail, which can take longer.
Some check-printing services and third-party financial services advertise bank drafts, but you should always get one directly from your bank. Going through a third party adds cost and delays and does not provide any benefit.
Frequently Asked Questions
Can I cancel a bank draft after I have paid for it?
Not easily. Once the bank issues the draft, the money is committed and the draft is treated as a may provide payment. You cannot stop it the way you can stop a regular check. Your only option is to contact the bank and ask them to place a stop on it, but this only works if the payee has not already cashed it, and it can take weeks to confirm.
What if the payee never cashes the bank draft?
The money stays out of your account until the draft is cashed or the bank confirms it will not be cashed. If you need the money back, you must contact the bank and request a stop, then wait for them to confirm the draft was not presented. After that period (usually 30 to 90 days), the bank will refund the amount, minus any fees they charged.
Is a bank draft the same as a wire transfer?
No. A wire transfer moves money electronically from your account to another account in real time or within one business day. A bank draft is a physical or digital check that the recipient must deposit or cash. Wire transfers are faster but cannot be reversed once sent, while bank drafts can theoretically be stopped if not yet cashed.
Do I need a bank account to get a bank draft?
Yes. You must have an account at the bank and have enough money in it to cover the draft amount plus the fee. Some banks may allow non-customers to purchase a draft, but this is rare and usually costs more.
How long does it take to get a bank draft?
Most banks issue a bank draft on the same day you request it if you go in person during business hours. If you request it by phone or online, it typically takes one business day. Mailed drafts take longer—usually three to five business days depending on postal delivery.