The six-month rule applies regardless of what is printed on the check. Whether or not that restriction is valid depends on several factors. Your bank may ultimately decide to ignore those instructions and process a check anyway. Different types of checks are valid for different amounts of time. The offers that appear on this site are from companies that compensate us.
Next steps: Ways to avoid a check going stale
Practically all checking accounts have zero interest, meaning most people only keep just enough in the account to pay the bills. As a result, when the forgotten check resurfaces without warning, there may not be enough funds in the account to cover it. When you write a check that goes uncashed, you may wonder what to do. If that’s the case, it’s best to keep the funds available in your account for at least six months. After that, leave the money alone or set it aside somewhere else for the inevitable day that you have to make good on the payment. Check with an attorney for specific guidance, and remember that a bank might accept the deposit and try to pull funds from your account at any time.
This is what happens when you deposit a fake cheque from a spam email
If somebody fails to deposit or cash a check you wrote, they may have difficulty negotiating the check after six months. However, you still owe the money, and banks can choose to process the payment. Like personal checks, company-printed checks, such as checks issued by a business for payroll or other purposes, are good for 180 days or six months.
Stale-Dated Checks Bank Checks 101
If the vendor responds, you can move forward with a replacement check and voiding the outstanding check. If you have a stale check, you may want to try asking the issuer if they’ll cut you a new one. Legally, banks are only required to honor checks for six months.
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- Other issuers may not charge fees, but they must eventually turn unclaimed assets over to the state.
- U.S. Treasury checks are paper checks issued by federal government agencies.
- For example, domestic USPS money orders are good indefinitely, but international money orders can expire.
- Making payments electronically allows you to schedule the funds to go out on a specific date.
- However, if you find a check that’s beyond its “sell by” date, contact the issuing bank and your bank to find out whether or not you can still use it.
- Ultimately, it may depend on the type of check involved, explained in detail below, and what the bank chooses to do.
This is why it is always best to contact the issuer before attempting to cash a stale or outstanding check. Making the call may be awkward, but accidentally slapping your grandma with a hefty overdraft fee is worse. Ask for a new check if the old one is past the six-month mark.
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- Banks are typically not required to delay cashing a post-dated check[1].
- Let the owner know how he or she can claim his check and provide a deadline for doing so.
- Now, let’s dive deep into understanding a stale-dated check and how it functions.
- The rule for the validity of checks issued by the state government can vary according to the state legislature in America.
- Almost every state requires a business to perform due diligence by contacting the owner of the unclaimed property.
- Each bank has its own check hold policies, check endorsement requirements, and clearance period.
Instead, they should be monitored, and the owner should be contacted periodically. As a business owner, you should take time to clearly outline how your company is going to handle stale checks. If you’re receiving a check, your company policy should be to deposit it within one month to ensure you do not lose it.
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- Personal, business, and payroll checks are good for 6 months (180 days).
- This can be safely disregarded as an attempt to remind people not to hold a check for too long.
- Bankrate.com is an independent, advertising-supported publisher and comparison service.
- Without proper proof of identity, a bank can legally refuse to cash a check made out to your name.
It’s important to know that when you get a check it may not be valid forever. Checks can become “stale dated” and may be harder, or even what is a stale dated check impossible, to cash. For a stop payment to work, your financial institution needs time to process it before someone cashes the cheque.
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