What s demand draft?

A demand draft is similar to a check. It is usually used as a means of payment of money from one person to another, just like a check. The difference is that, in order to get a demand draft, the person has to visit the bank, deposit the money for which the draft is to be taken and also pay a fee for the same. The draft is as good as cash. Most people prefer accepting drafts instead of checks because, there is a guarantee that the payment will be made.