What is the Difference between Demand & Bank Draft and Pay & Money Order
The humans earn money by working day and night and contributing towards the development of their country. They earn money to get better life standard and to give better quality of education and facilities to their children. The worth of the money also puts it in danger as it is always possible that it might get stolen or sometimes snatched. Money is being protected by the persons by keeping it in Banks and other reserves. Banks not only protects our money but also gives us loans in time of need and form a special part of the human society.
Demand
The demand is the funds which are kept in the demand account of the banks. .They is mostly present in the commercial banks. It contributes large amount towards the money supply of the country.
Bank Draft
It is a type of cheque or document which is guaranteed by the bank for payment and It is their promise to pay the holder of the cheque the amount imprinted on the bank draft.
Pay
Pay is referred to the process of transfer of money or some other valuable from one party who is the holder to the other party who is the receiver and to whom the valuable is being transferred.
Money Order
Money order is a type of cheque in which the amount is fixed and is decided prior to the payment. It has specific amount printed on it and it acts like a certified cheque.
Demand Vs Bank Draft Vs Pay Vs Money Order
Demand is referred as those funds which are kept in the accounts of bank for the purpose of payment while Pay is the process of transfer of money or valuables between two parties. Money order is a type of certified cheque while bank draft is a cheque which has the guarantee of bank behind it.
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