when is a bank draft not a bank draft?

C

CillianB

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just closed a savings account with bank over phone. (I preferred the idea of having a physical high st bank i could que outside of in the event of a bank run)
they will send out a bank draft for the relevant amount made out to the joint holders of account.
Now if i decide simply to hold on to this draft for a period of time and treat it like cash under the mattress, will it retain it's value in the event of a bank run or a Euro crash?....or should i just lodge it ASAP ?
 
It is just a piece of paper.

If you don't cash it and that bank goes under then bye bye money.

Also like a cheque you will have problems once it is 6 months old.
 
When I worked in a bank down the country many years ago it was not uncommon for people to buy drafts and hold them under the matress. Usually this was a way to hide money from the taxman - one had money in the bank, but not in a current or deposit account.

The draft is as safe as the bank on which it is drawn. There might be a technical difficulty if it is held for more than 6 months. However, if the amount is large, it may be considered as suspicious from the point of view of money-laundering legislation
 
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