Also, the issuers of checks sometimes note a time limit on their checks’ validity on the face of the check. A certified check is a check verified – or certified – by a bank ensuring that the stated funds are available in the account to cover the check. Though certified checks typically don’t expire, they are often subject to state unclaimed property laws. Generally, a “stale check” (also called a “stale-dated check”) is an uncashed check that’s more than six months old. Although banks, credit unions or other financial institutions might let you cash or deposit an outdated check into your account, the law doesn’t require them to do so.
What Happens if You Don’t Cash a Check?
To make a case for punitive damages in a situation in which a bank wrongfully honored a stale check might be challenging. Again, only if the bank committed some type of outrageous wrong could a claim for punitive damages succeed. Another thing a person can do to prevent a stale check from clearing is to freeze their account. Typically, accounts are frozen if checks have been stolen or there is other possible fraudulent activity, but a person can always ask to have their account frozen.
Do Checks Expire?
Being proactive and timely checking the banking transactions can assist the business owner in avoiding these checks and even guarantee less complexity in his professional life. Deskera is a one-stop solution to handle the payroll of your employees and makes use of cutting edge technology to handle business transactions at the touch of your fingertips. A stale date check business owner must define a clear company policy to outline how his organization handles the stale-dated check. Under this policy, he must ensure the check received is deposited in the bank within a month. Furthermore, the policy must state the rules about the action to be done if the recipient does not cash the amount that you have issued in business.
State and local government checks
While a bank does have the right to refuse an old check — and even return it to the original issuer — it also might decide to honor it. Before trying to cash a stale-dated check, it might be a good idea to contact the bank that holds the account the check is drawn against to see what its policy is. However, in all cases, the best strategy is to deposit or cash a check you receive right away. Treasury check for up to 1 year after the check was dated. Bank deposit accounts, such as checking and savings, may be subject to approval.
The Bankrate promise
- According to the official definition, stale-dated checks are those checks which are at least 6 months that are 180 days old.
- You can try and deposit or cash it, but you risk the check being rejected by your bank or possibly returned from the issuing bank.
- Note that a nonrefundable service fee may be deducted from the principal amount if you don’t cash a money order within one to three years, depending on the state of purchase.
- In most cases, you cannot cash a check more than 180 days old.
- If you have property that falls into any of the above categories, you may need to report it to the State of Arizona.
If you miss this deadline, you may contact the relevant government agency to request the check be re-issued. Some checks have preprinted language stating how long they’re valid. However, even if it seems expired, the bank might still accept it. Due to the popularity and ease of electronic payment and cash transfer apps, the use of paper checks is slowly declining. Despite this decline, paper checks are not yet obsolete, so there might be an instance in which you have to write, cash or deposit one.
- Some checks are good for about 6 months, and others may never expire.
- As checks are money, once you receive a check, the best thing to do is to cash or deposit it as soon as possible.
- Some checks have preprinted language stating how long they’re valid.
- If time goes by, you might find yourself wondering “How long is a check good for?
- Typically, personal checks are good for six months (or 180 days) from when they’re dated.
- BankersOnline is a free service made possible by the generous support of our advertisers and sponsors.
Unless you have a government-issued check or certified check, it’s wise to deposit checks within six months. Doing so prevents confusion at the bank and lets the check writer know that you’re ready to collect your money. 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.
What Happens if You Deposit an Expired Check?
- You can read more about our editorial guidelines and our products and services review methodology.
- Contact the issuing agency for a replacement check if needed.
- Checks can become stale or outdated after a certain amount of time has passed.
- Remember that escheatment laws require companies to turn over unclaimed funds.
If he fails to remind his HR employee or any other professional who is in charge of taking the checks to the bank, they become stale-dated checks. So, when you receive a check, cash or deposit the check promptly. This step helps avoid problems and reduces risks such as bounced checks. If you find an old paycheck that has expired, your employer may be able to issue a replacement.
What types of checks can ‘go stale’?
State government checks usually stay valid for six months to a year, depending on the state. However, if a check is unprocessed beyond its expiration, the issuer might use the funds in other ways. This could lead to the check bouncing — a bounced check occurs when the account holder has insufficient funds. These checks are returned to the bank and the issuer is charged a fee as a penalty.