A bank draft check, a term frequently used in the United Kingdom, is more commonly known in the United States as a cashier's check. A bank draft check is generally used to guarantee the funds are available in certain types of situations.

Features

To obtain a bank draft check, you either pay the teller in cash or transfer funds from an account with that particular bank. The money is immediately deducted from your account, unlike with a personal check, which typically must be presented by the other party before funds are withdrawn.

Security

Bank draft checks feature the name of the issuing bank in an obvious location near the top. They are usually produced with enhanced security features such as watermarks and color-shifting ink.

Protection

A person or business might require you to pay by bank draft check or credit card when he has no relationship with you and no protection if your personal check lacks funds in the account to cover it. Individuals making small numbers of retail sales over the Internet, for instance, might not accept personal checks.

Transaction Record

A bank draft check is commonly used for paying large amounts of money. You might need a bank draft check for a good-faith deposit when buying a house, for example, or when buying a car from a private seller. Although you could pay in cash, you would have no record of the transaction.

Price

Bank draft checks usually cost a small fee to purchase, such as $2 or $3. They usually are a bit more expensive than money orders, which are similar as far as guaranteeing availability of funds, but typically have a maximum amount of $1,000.

Source:

Investopedia: Bank Draft