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
for example, you might need a bank draft as part of a deposit to hold a house you plan to rent, or you might need cash or a cashier’s check to pay for a car you plan to purchase from a private seller. While some people might prefer to pay with cash, this is not always a good idea. Getting a bank draft at the least provides you with a record of a transaction, whereas cash does not. The draft is usually made out to the individual to whom you are making the payment, and this is also recorded. You can show you withdrew cash from your account, but you may not be able to prove that you then gave it to a third party. It can cost a little money to purchase a cashier’s check, usually a couple of dollars per hundred US Dollars (USD) withdrawn. Many find the security of researchable records is well worth the cost.
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