Cheque vs Demand Draft — Difference (with Table)
Cheque vs Demand Draft compared side by side — a 5-row comparison table and 4 key points. Class 10 Economics, free and no sign-up.
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TL;DR: Cheque vs Demand Draft compared side by side — a 5-row comparison table and 4 key points. Class 10 Economics, free and no sign-up.
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The main difference between Cheque and Demand Draft: Cheque is issued by account holder while demand draft is issued by bank. Both are payment instruments used in India.
Cheque vs Demand Draft — Comparison Table
| Basis | Cheque | Demand Draft |
|---|---|---|
| Issuer | Account holder | Bank |
| Drawer | Can be anyone with account | Only bank |
| Risk | May bounce if insufficient funds | Guaranteed by bank |
| Cost | Free or minimal charge | Charges apply |
| Validity | 6 months | Usually 10 years |
Key Points
- Cheque is conditional on account balance
- Demand draft is secure payment method
- DD is preferred for large transactions
- Cheque can be crossed for safety