Do Checks Expire and How Long Are They Valid For?

A check functions as a written instruction directing a bank to disburse a specific sum of money from an account to a designated individual or entity. Understanding how long a check remains valid is important for both the recipient and the issuer to manage their finances effectively.

Standard Validity Period for Personal and Business Checks

Personal and business checks generally adhere to a standard banking practice regarding their validity. Most banks consider these checks valid for six months from their issue date. Presenting a check after this six-month period means it is considered “stale-dated.”

While a bank can choose to honor a stale-dated check, they are not legally required to do so. The Uniform Commercial Code (UCC) Section 4-404 grants banks the discretion to refuse payment on a check presented more than six months after its date. If a bank decides not to pay a stale-dated check, it will be returned unpaid.

The decision to pay a stale-dated check often rests with the bank’s internal policies and may depend on various factors, including the account balance and the relationship with the account holder. It is advisable for a check recipient to deposit or cash checks promptly to avoid issues with staleness.

Validity for Other Check Types

The validity rules for checks can vary beyond standard personal or business checks, often due to how the funds are guaranteed or regulated. Cashier’s checks and certified checks are generally considered to have a longer validity period, often indefinitely. This is because the funds for these checks are guaranteed by the issuing bank, which sets them apart from personal checks where funds are drawn directly from an individual’s account. Despite their extended validity, practical issues like bank mergers or changes in record-keeping can still complicate cashing very old guaranteed checks.

Money orders also have varying validity, depending on the issuer, such as the U.S. Postal Service (USPS) or private companies like Western Union. Some money orders may not have an explicit expiration date, but they can become subject to service fees if uncashed for an extended period.

Government checks, including tax refunds and Social Security payments, typically come with a specific expiration date. These checks commonly expire one year from their issue date, after which they may require reissuance from the government agency. Payroll checks, while generally treated similarly to business checks, may be subject to an employer’s specific policies, though direct deposit has made uncashed old payroll checks less common.

Managing Old or Uncashed Checks

Dealing with checks that remain uncashed for an extended period requires specific actions from both the recipient and the issuer. Prompt action is recommended to ensure funds are properly handled.

For individuals holding an old check, the first step is to contact the issuer to confirm the availability of funds or to request a new check. While an attempt can be made to deposit the old check, be aware that the bank retains the discretion to accept or reject it, especially if it is stale-dated. If the bank rejects the deposit, contacting the original issuer becomes necessary to arrange for a replacement.

For those who have issued a check that remains uncashed, it is important to monitor the bank account to ensure the funds remain available to cover the check. If there are concerns about fraud, or if the payment needs to be re-issued, placing a stop payment order on the original check is an option. This process typically involves contacting the bank and may incur a fee, usually ranging from $15 to $35, and is generally valid for six months.

If a check remains uncashed for a very long time, the funds may eventually be subject to unclaimed property laws, also known as escheatment. Under these laws, states require companies and individuals to turn over dormant funds to the state treasury after a specified dormancy period, which can range from three to five years. Once escheated, the original owner of the funds would need to claim them directly from the state’s unclaimed property division.