UK Accounting Glossary
A bank draft is a written order in the form of a check instructing the payment of money from one bank account to another. The bank draft is drawn by one bank against funds that it has deposited in an account at a second bank. The first bank is giving its consent for the second bank to release funds or make payment to the individual named on the bank draft. A bank draft is usually more acceptable to a payee than a personal check. Other terms for bank draft are draft, bill of exchange, an order of payment, banker’s draft and a negotiable instrument. A bank draft is similar in form to the common bank check. Frequently, a bank draft is used to transfer funds and to settle outstanding balances between banks.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Bank Draft are sourced/syndicated and enhanced from:
This glossary post was last updated: 4th February, 2020