A bank draft is a check written by your bank using the bank's own money, not yours
When you write a regular check, you're instructing your bank to move money from your account to someone else. A bank draft is different: the bank itself writes the check and guarantees the money is there. The bank pulls the funds from your account upfront and holds them until the check clears. From the person receiving it, a bank draft looks and works like a regular check — but it carries the bank's promise, not just yours.
This matters because a regular check can bounce if you don't have enough money in your account. A bank draft cannot bounce. The recipient knows the money is already set aside. That's why people ask for bank drafts when large sums are involved or when they don't know you well enough to trust a personal check.
Bank drafts are also called cashier's checks or official checks, depending on your bank. The names mean the same thing: a check the bank itself has written and may provide.
Key Takeaways
- A bank draft is written by your bank, not by you, and the bank guarantees the funds are available.
- The bank removes the money from your account when you request the draft, so the check cannot bounce.
- Bank drafts cost a small fee — usually between $5 and $15 per draft, though some banks waive the fee for account holders.
- You need a bank draft when buying a car or house, paying a security deposit, or sending money to someone who won't accept a personal check.
- Getting a bank draft takes a few minutes in person at a branch, or sometimes a few business days if you order by phone or online.
When someone asks for a bank draft instead of a personal check
A landlord asking for a security deposit might request a bank draft because they want proof the money exists before you move in. A car dealer might ask for one because they're holding a vehicle for you and need to know the payment won't fail. A title company closing a home sale will often require a bank draft because the amounts are large and the transaction is final.
Anyone selling you something valuable — a car, a boat, land — may ask for a bank draft for the same reason: they need certainty. A personal check can fail days after you hand it over. A bank draft cannot.
You might also use a bank draft to send money to someone in another country, or to pay a bill to an organization that doesn't know you. The recipient sees the bank's name on the check, not yours, which gives them confidence the money is real.
How to get a bank draft from your bank
Go to your bank branch in person with your account information and the amount you need. Tell the teller you want a bank draft (or cashier's check — either name works). The teller will ask who the check should be made out to — that is, whose name goes on the "Pay to the Order of" line. You cannot leave this blank or make it out to yourself; the bank needs a specific recipient name.
The teller will remove the money from your account when ready and issue the draft. You'll pay a fee at this point, usually $5 to $15. Some banks charge nothing if you maintain a certain account balance or have a premium account. The whole process takes about five minutes.
If you cannot visit a branch, some banks let you order a bank draft by phone or through their website, though it may take a few business days to arrive by mail. Call your bank's customer service line to ask whether this option is available and what the process is.
What information you need before you go to the bank
You need to know the exact name of the person or organization the draft should be made out to. If you're paying a title company or law firm, ask them for the exact legal name they want on the check — getting this wrong means the draft won't work and you'll have to get a new one.
You also need to know the exact amount. Bank drafts cannot be altered after they're issued, so if you're not sure whether you need $5,000 or $5,500, find out before you go to the bank. If you get the amount wrong, you'll have to request a new draft and may lose the fee you already paid.
Bring your ID and your debit card or account number. Some banks require you to be an account holder to get a bank draft; a few will issue one to non-customers for a higher fee.
Bank drafts versus other ways to send may provide money
A money order is similar to a bank draft but smaller — money orders are usually capped at $500 to $1,000 and cost less (often $1 to $5). You buy a money order at a post office, grocery store, or check-cashing place, and the recipient knows the money is may provide. Money orders work well for smaller payments.
A wire transfer moves money directly from your bank account to someone else's bank account electronically. It's faster than a check and the money arrives within hours or a day. Wire transfers cost more (usually $15 to $30) and cannot be reversed once sent, so they're riskier if you make a mistake. Use a wire transfer when speed matters and you're certain of the recipient's account details.
A certified check is a personal check your bank has stamped to confirm the funds are there. It costs less than a bank draft (sometimes free) but is less common now because banks prefer to issue their own drafts instead.
What happens after you hand over the bank draft
The recipient deposits or cashes the draft like a regular check. Because the bank has already set the money aside, it clears quickly — usually within one or two business days. You won't see the money leave your account twice; it left when you requested the draft.
Keep your receipt from the bank. If something goes wrong — the recipient says they never got it, or there's a dispute about the payment — you'll need proof that you obtained the draft and the amount it was for.
If you change your mind after getting a bank draft, you can ask the bank to cancel it and refund your money, but only if the draft hasn't been cashed yet. Once someone deposits it, it's gone. Some banks charge a fee to cancel, so ask before you request the draft whether cancellation is possible and what it costs.
Bank draft fees and what affects the cost
Most banks charge between $5 and $15 per bank draft. Some charge nothing if you have a checking account with them and maintain a minimum balance, or if you have a premium account tier. A few banks charge more — up to $20 — especially if you're not an account holder.
The fee does not depend on the amount of the draft. A $500 draft costs the same as a $5,000 draft at the same bank. Shop around if you need multiple drafts; fees vary enough that calling three banks might save you $10 or $20.
If you need a replacement draft because the original was lost or damaged, the bank may charge another fee. Ask about this before you leave the branch.
Frequently Asked Questions
Can I get a bank draft made out to myself?
No. A bank draft must have a specific recipient's name on it. If you need cash, withdraw it from your account instead. If you need a may provide payment to yourself for some reason, ask your bank what alternatives they offer — they may suggest a different solution.
What if I make a mistake on the recipient's name?
You'll need to get a new draft with the correct name. The original draft becomes worthless. Some banks will cancel it and refund your fee if you catch the mistake before leaving the branch, but once you leave, you may have to pay for a replacement. Always confirm the exact name with the recipient before the teller writes it.
How long does a bank draft stay valid?
Bank drafts typically remain valid for six months to a year, depending on your bank and state law. After that, the recipient may not be able to cash it. If your draft expires before it's used, ask the bank for a replacement.
Can I stop payment on a bank draft like I can on a personal check?
It's much harder. Because the bank has already set the money aside, stopping payment requires the bank to cancel the draft before it's cashed. Once someone deposits it, the money is gone and cannot be recovered through a stop-payment order. Only request a bank draft when you're certain about the payment.
Do I need a bank draft if I'm buying something online?
Rarely. Online sellers usually accept credit cards, debit cards, or digital payment services like PayPal. Bank drafts are mainly used for in-person transactions involving large amounts or when the seller specifically requests one. If someone online insists on a bank draft, be cautious — it may be a scam.