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Bank drafts are used to pay for large purchases like real estate or vehicles. Learn how bank drafts work and how to get one.
A bank draft is a physical form of payment that is guaranteed by a financial institution. Bank drafts are used for large purchases such as cars and real estate. To get a bank draft, you make a request to your bank, which will check your account to ensure you have enough funds. The bank then withdraws the money and moves it into a reserve account, where it sits until the recipient of your bank draft cashes it in.
Example: “Jon needed a bank draft to make a deposit on a new condo.”
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