Is this already paid for?

[ihateryansworld]

My sister sent me a Euro Demand Draft for my birthday. My parents don't want me to cash it as Sister is always strapped for cash.

Husband says the money is already out of her account. Is this true? I have never come across this before.

Thanks.

It sounds like a bank draft, which I thought had died a bit of a death in the UK, due to apps and faster payments etc meaning that people can transfer money instantly using their smartphone.

If it works the same, yes the money will have already left her account when she organised the draft and it will be in a holding account until you cash it. I don't know what happens if you never cash it - I think drafts will have a reasonable longevity of at least a few months, or even a year or more. Will the money be returned to her, or will it remain in the holding account forever?

Seems an odd way to give other people money in this day and age, but it could be the norm in whichever country she/you are in?

She's in Ireland and has lots lots of cash and indeed cheques sent in birthday cards. This is apparently safer.

I'm not sure about Euro Demand Drafts, but from a practical perspective, if it were me and I wrote a cheque or postal order, I would budget that money as having been spent and therefore would make sure I don't spend that amount.

Therefore, even if it is still in her account, she knows it is earmarked for you as she has effectively spent it by giving it to you.

I don't write cheques nowadays but I used to find it quite stressful when I was struggling for money and people took ages to cash cheques as I'd have to keep holding onto the money for them. So you might not be doing her the favour you think you're doing!

Also, I know you didn't ask for an opinion on this so sorry to butt in, but you say your parents want you not to cash the draft - what do you want to do? Assuming your sister is an adult and she has chosen to give you this money as a present, could it be a bit upsetting if you decide not to accept her gift? It seems a little presumptuous to assume she's been irresponsible in giving you a birthday present as you/your parents think she can't spare the money, but obviously that depends on your relationship with her.

I would definitely be up front with her if you decide not to accept it though.