It's risky to rely on postdating or processing delays to ensure your check clears. Financial institutions now send digital pictures of checks to other financial institutions, so they can be cashed more quickly. Is it illegal to postdate a check? A savings account is a place where you can store money securely while earning interest. Learn More. LendingClub High-Yield Savings. APY 0. Discover Bank Online Savings. Cash management accounts are typically offered by non-bank financial institutions.
Wealthfront Cash Account. CDs certificate of deposit are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
Capital One CD. APY 1. Chime Spending Account. One Spend. Citi Priority Checking. LendingClub Rewards Checking. Money market accounts pay rates similar to savings accounts and have some checking features. Usually, you can contact the party who issued the check and ask that it be reissued.
This applies if your tax refund check has expired, for example. Many states also have unclaimed property laws that require individuals and business to hand over assets to the state if the payee hasn't claimed them.
If a bank will not cash your stale-dated check because the company has gone out of business or the account no longer exists, contact your State and inquire about unclaimed property.
Personal Finance Budgeting. By Madison Garcia Updated September 24, A bank may cash any check if they believe it to be valid and there are funds to cover it. Identity theft occurs when someone obtains personal or financial information of another person in order to assume that person's identity to make transactions or purchases. Cornell Law School. Date of Instrument. Consumer Financial Protection Bureau. Checking Accounts. Debt Management.
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Your Money. Personal Finance. Your Practice. Popular Courses. Banking Checking Accounts. What Does Postdated Mean? Key Takeaways Postdated refers to a payment that is meant to be processed on a specified date in the future. If it's later than the current date, then it's a postdated check.
People usually postdate checks when they want the recipient the person or business receiving the payment, also known as the payee to wait before depositing the check. Two potential reasons for this include:.
Postdated checks are legal. It is also illegal to pretend to pay someone without actually intending to do so. Just because it's legal to write a postdated check doesn't mean things will work out the way you intended. The date you choose to use is not part of a legally binding agreement between you and the payee.
In most cases, the recipient can deposit the check at any time, and the bank is free to pay funds out of your account before the date shown on your check. While postdating a check won't guarantee a delay, you can specifically instruct your bank not to cash a certain check until a certain day.
Banks have different policies for how long they will continue to monitor to prevent premature payment. In most cases, when you receive a postdated check, you can deposit or cash a postdated check at any time. Debt collectors may be prohibited from processing a check before the date on the check, but most individuals are free to take postdated checks to the bank immediately.
That said, if you agreed to wait, cashing the check prematurely might be considered in violation of an oral agreement, and that could be illegal in some jurisdictions. If the account does not have sufficient funds, the check might bounce , and you might have to pay insufficient funds or overdraft fees to your bank.
When you have a postdated check, find out if the check was intentionally postdated and figure out a solution.
Cashing a postdated check might be more difficult than depositing it. Depositing allows your bank to place a hold on the funds while the check clears, but cashing a check requires an immediate transaction.
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