How Long Is a Check Valid for Deposit?
Uncover the key factors determining how long a check remains valid for deposit. Learn practical steps for handling older checks effectively.
Understanding how long a check remains valid for deposit is important for managing personal finances. The validity period can vary depending on the type of check, influencing whether a financial institution will accept it. This knowledge helps prevent inconvenience and potential fees associated with attempting to deposit an outdated check.
General Check Validity
Most personal and business checks remain valid for six months, or 180 days, from their issue date. After this timeframe, a check is considered “stale-dated.” Financial institutions are not legally obligated to honor stale-dated checks, as guided by the Uniform Commercial Code (UCC), which states a bank is not required to pay a check presented more than six months after its date.
Even if a check has a “void after 90 days” notice, banks may still honor it up to the 180-day mark for personal or business checks. This language encourages prompt deposit. It is advisable to deposit checks as soon as possible to avoid potential issues, such as changes in the issuer’s account or insufficient funds.
Checks with Specific Validity Periods
Certain types of checks have distinct validity periods. Checks issued by the U.S. Treasury are valid for one year from their issue date. If such a check expires, the recipient is still entitled to the funds and can contact the issuing federal agency for a replacement.
Cashier’s checks and certified checks, which represent guaranteed funds, do not have a set expiration date under federal law. However, some banks may print “void after” dates on these checks. These checks remain valid as long as the issuing bank operates, but very old checks might become subject to state escheatment laws, where unclaimed property is transferred to the state.
Post-dated checks are written with a future date. While legal, banks are not required to hold these checks and may process them immediately upon deposit. If a post-dated check is cashed early and there are insufficient funds, the check writer could incur non-sufficient funds (NSF) fees.
Bank Practices for Old Checks
When a check is presented for deposit beyond its typical validity period, banks exercise discretion in deciding whether to honor it. A bank may choose to accept a stale-dated check. Conversely, banks have the right to refuse a stale check, which could result in the check being returned and the depositor incurring fees.
The funds for an uncashed check remain in the issuer’s account until the check is paid or a stop payment order is issued. An issuer can place a stop payment on a check. This action prevents the bank from honoring the check if it is later presented.
If an individual possesses an old check, communicate with the check issuer. Requesting a new check is a common solution. Alternatively, contact both the depositing bank and the issuing bank to inquire about their specific policies for stale-dated checks.