A cheque drawn on the bank itself. These are normally required in property transactions.
A Banker's Draft is simply a cheque written by your bank More Bankruptcy - Bankruptcy can severley harm your chances of getting credit More
This is a cheque drawn on the bank (or building society) itself against a cash deposit. A 'bankers draft' is thought of as being a secure way of receiving money from someone you don't know where you fear his/her cheques bounce (may not be honoured) and where it's not convenient or desirable to receive cash. 'Bankers drafts' are commonly used for large purchases such as homes and cars.