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Bank Draft vs. Certified Cheque — What's the Difference?

By Tayyaba Rehman — Published on January 9, 2024
A bank draft is a payment issued by a bank on behalf of the payer, guaranteeing funds, while a certified cheque is a personal cheque verified and stamped by the bank as having sufficient funds.
Bank Draft vs. Certified Cheque — What's the Difference?

Difference Between Bank Draft and Certified Cheque


Key Differences

A bank draft is a secure form of payment where the bank takes the amount from the payer's account when creating the draft. In contrast, a certified cheque is a personal cheque certified by the bank, confirming the availability of funds in the payer's account.
Bank drafts are considered more secure because the funds are drawn directly by the bank. Certified cheques, although verified, are still subject to the risk of the account holder's funds changing after certification.
A bank draft is typically used for large transactions, like buying a car or a house, due to its security and credibility. Certified cheques are often used for smaller transactions where certification provides enough trust.
The process of obtaining a bank draft involves the bank withdrawing funds from the payer's account immediately. In comparison, for a certified cheque, the bank freezes the required amount in the payer’s account.
Bank drafts are generally considered safer for the recipient because the bank guarantees payment. With certified cheques, the guarantee is only as good as the current balance in the payer's account.

Comparison Chart

Source of Funds

Directly from the bank.
From the payer's account, verified by the bank.


Higher, as the bank guarantees payment.
Lower compared to a bank draft, depends on account balance.

Typical Use

Large transactions (e.g., property purchase).
Smaller transactions where trust is needed.

Funds Availability

Funds are withdrawn immediately.
Funds are frozen but remain in the payer's account.

Risk for the Recipient

Very low, as payment is guaranteed by the bank.
Slightly higher, depends on the payer maintaining sufficient funds.

Compare with Definitions

Bank Draft

A bank draft offers guaranteed funds, reducing the risk of bounced payments.
For international trade, we prefer bank drafts due to their reliability.

Certified Cheque

A certified cheque combines the convenience of a personal cheque with added security.
I used a certified cheque for the payment to show my commitment.

Bank Draft

A bank draft is a pre-paid instrument, often used in large transactions.
We accepted a bank draft for the sale of our family business.

Certified Cheque

A certified cheque is a personal cheque guaranteed by the bank for available funds.
I provided a certified cheque to cover my rental deposit.

Bank Draft

Bank drafts are considered more secure than personal cheques.
I requested a bank draft for the boat sale to avoid any payment issues.

Certified Cheque

Certified cheques provide assurance to the recipient about the availability of funds.
Buying the antique piano, I paid with a certified cheque for immediate validation.

Bank Draft

Bank drafts are drawn directly against the bank's funds after deducting from the payer's account.
For the down payment of my house, I issued a bank draft for its security.

Certified Cheque

Certified cheques are stamped by the bank, freezing the cheque amount in the payer’s account.
To assure the seller, I paid with a certified cheque for the artwork.

Bank Draft

A bank draft is a payment instrument issued by a bank, guaranteeing payment.
I paid for my new car using a bank draft to ensure secure transaction.

Certified Cheque

Certified cheques are suitable for transactions where trust and security are important.
For the contractor’s payment, a certified cheque was used to ensure funds.

Common Curiosities

Is a bank draft similar to a cashier's check?

Yes, a bank draft is similar to a cashier's check, as both are drawn against bank funds.

Are certified cheques safe for large transactions?

They are relatively safe but less secure than bank drafts for large transactions.

Can a bank draft be canceled?

Yes, but canceling a bank draft can be a complex process.

What happens if a certified cheque is lost?

If lost, a stop payment can be placed, and a new cheque can be issued.

Is there a fee for certified cheques?

Yes, banks usually charge a fee for certifying cheques.

Can a certified cheque bounce?

It's rare, but a certified cheque can bounce if the account has issues after certification.

Are certified cheques good for international transactions?

Certified cheques are less preferred for international transactions due to longer clearing times.

How quickly does a certified cheque clear?

A certified cheque typically clears faster than a regular cheque, but times can vary.

Can I stop payment on a bank draft?

Stopping payment on a bank draft is difficult and usually not possible.

What is required to get a bank draft?

To get a bank draft, you need the amount in your account plus any applicable fees.

How long does it take to get a bank draft?

Obtaining a bank draft usually takes one visit to the bank.

Do bank drafts have expiration dates?

Typically, bank drafts do not expire but check with the issuing bank.

How secure is a bank draft against fraud?

Bank drafts are very secure, but one should still be cautious of fraudulent drafts.

Can anyone issue a certified cheque?

Only individuals with sufficient funds in their bank accounts can issue a certified cheque.

Are bank drafts and certified cheques traceable?

Yes, both are traceable through their unique numbers and bank records.

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Author Spotlight

Written by
Tayyaba Rehman
Tayyaba Rehman is a distinguished writer, currently serving as a primary contributor to As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.

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