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  • Writer's pictureLinom Ardin

The Difference Between Bank Drafts and Certified Cheques

There are two major types of cheques: bank drafts and certified cheques. The difference between the two is in the best way they are processed. Bank drafts are used when large amounts of money need to be transferred. While personal cheques and cash are often used for smaller amounts, certified cheques have many advantages over bank drafts.



Bank drafts are issued by a bank at the request of the person or company being paid. These are similar to certified cheques, but certified ones are signed by a bank employee. A bank draft allows a person or company to settle transactions and is considered more secure than a personal check. Depending on the issuer, bank drafts are only issued if the funds are available.


The main difference between certified cheques and bank drafts is their safety. A bank draft is often more secure than a check, but it can still be lost or stolen. Because of this, it is important to check the validity of the document. In some instances, a bank will not put a stop payment on a bank draft if it has already been issued. In these cases, the person who received the draft should be sure to keep it in a secure location until it can be cashed.


Bank drafts and certified cheques both have their advantages and disadvantages. A bank draft is a guaranteed payment to the payer. It is also secured by a bank, so you can be assured that your money is safe and secure. A bank draft requires the payer to have a bank account with the issuing bank. The bank must also ensure there is sufficient balance in their account to cover the amount of the draft.


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