A bank draft is a secure payment method issued by a bank, guaranteeing the funds are available. It is created when a customer requests the bank to withdraw a specific amount from their account and issue a draft payable to a designated recipient. This makes bank drafts a reliable option for large transactions, as they are less likely to bounce compared to personal checks. Unlike personal checks, which depend on the account holder's balance, a bank draft is backed by the bank's funds. This ensures that the recipient can confidently accept the payment, making it a popular choice for transactions involving real estate, automobiles, or other significant purchases.