Definition, Meaning & Synonyms

bankers-cheque

Noun

/ˈbæŋ.kərz ˌtʃɛk/

Definition

A bankers’ cheque is a financial instrument issued by a bank that guarantees payment to the payee. It is also known as a bank draft.

Examples

He received a bankers’ cheque for the sale of his car.
To finalize the transaction, she issued a bankers’ cheque to the vendor.
The company preferred payment via bankers’ cheque to ensure the funds were secure.

Meaning

A bankers’ cheque is issued by a bank on behalf of a customer, confirming that the amount written on the cheque is reserved for payment. It is commonly used for transactions where the payee requires security that the cheque will not bounce due to insufficient funds.