A bank draft is a payment instrument that guarantees the funds by your financial institution. It also is known as a banker’s cheque. In simple terms obtaining a bank draft is similar to asking your bank to write a cheque for you. The draft will enable you to make payments without having to withdraw money from your account. Here the bank will transfer the amount to an account of the bank issuing you the bank draft which the receiver of the money can use to collect money with. With this, the receiver won’t experience check bounces due to lack of funds in the account.