What does SDT mean in ACCOUNTING

Share Draft Transmittal (SDT) is a process of transferring funds from one bank account to another for the purpose of moving money between accounts in a secure manner.

In order for an SDT to work, both banks need to be members of the same electronic network which allows them to securely transfer funds between each other's accounts without needing physical cheques or other documents. Funds are electronically sent and received through this network with the help of an intermediary third-party processor.

Using SDT has many advantages over traditional methods such as checks and wire transfers. These include increased safety and security since all transactions are electronically encrypted, faster processing time since there is no manual paperwork involved, and lower transaction fees due to the lack of paper documentation required. Additionally, users can track their transactions online or via mobile phone app.

Most financial institutions offer SDT services for both individuals and businesses alike. Individuals must have an existing bank account that has been established for at least six months in order to use this service. Additionally most banking institutions require that account holders have a good standing relationship with their chosen banking institution prior to initiating an SDT request.

Generally, most banks charge a relatively small fee for initiating an SDT transfer request; however this fee varies depending on which banking institution you are using and how much you are sending/receiving in funds via the electronic network. The fees should be outlined in your specific terms & conditions agreement before making any transfers occur through the networked system.