As mentioned, personal checks are usually valid for up to six months after the date they were issued, but you shouldn’t count on the bank to pay attention to the dates. But there are several exceptions, and there’s no guarantee that banks will reject checks after that time. The Uniform Commercial Code (UCC), which most states use as a model for the law, says that banks do not need to honor old checks. But banks can still process those payments if they believe the check is good. Checks can make payments inexpensive and easy, but what happens when nobody deposits them? But the obligation to pay still exists, so it’s virtual accountant best to deal with payments as soon as possible.

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Most types of checks can go stale — personal checks, business checks, and government checks are examples of checks that can go stale. Do personal checks expire more quickly than company-printed checks? You may have valid reasons for holding on to a check written to you, but it’s best to deposit or cash checks as soon as possible, as there are risks involved.

What to do if you receive a stale-dated check

As the rightful owner of these funds, the state should hold them in case you claim them. 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. Let’s look at what to know about stale-dated checks and what you can do if you’re holding onto one. Offers that appear on this site are from third-party advertisers from which Credit Karma typically receives compensation. If your bank abides by a strict six-month cutoff date, you could always call the person who wrote you the check and ask for a replacement.

• If you have a stale check outstanding, contact your bank to determine their policy.
• If they still want to cash the check, offer to write them a new one — just make sure you get the old check back first, or put a stop payment order on it.
• However, the institutions and companies that issue them may have rules determining when unused money orders become considered abandoned property.
• So, I post-date the check so that the check recipient knows not to deposit that check until that date.
• That way, you’re not only aware of your financial standing, but also shielding yourself from issuing a check when there aren’t sufficient funds to cover it.

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If possible, try to go to the branch where the payor’s account is located, as they may have a banking relationship with the person or business that wrote the check. Freezing an account will prevent all outstanding checks from clearing. It will also prevent the person from making any deposits, as all transactions will be effectively stopped or “frozen” until the account is unfrozen. Frozen bank accounts are typically not going to be unfrozen. Some banks may do it, but they may charge a fee for depositing or cashing a stale check that is older than 6 months. In most cases, a check will be considered ‘stale-dated’ if it’s more than six months old and banks are not obliged to cash or deposit it.

•   The issuing bank may not be able to transfer the funds, as noted above. The account could CARES Act have been closed in the interim, or it might have insufficient funds. You could wind up with a fee for the check being returned. Again, you might contact the bank (this time, the issuing one) to inquire whether the check can be deposited.

What Happens If You Cash An Expired Check?

We are not contractually obligated in any way to offer positive or recommendatory reviews of their services. If the check is returned for insufficient funds, I have to pay an expensive insufficient funds fee, which averages $35.20 at the top 10 U.S. banks. 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. •   Traveler’s checks, while not so commonly used these days, usually don’t expire as long as the issuing bank is still in business. •   Depositing a stale-dated check could lead to the check being returned and incurring a fee.

• Cashing a check promptly ensures that you can access the funds without issues, such as the check bouncing or having it go stale.
• Most banks have an automated system for verifying these checks.
• Unless you have a government-issued check or certified check, it’s wise to deposit checks within six months.
• Rather than just reversing the charge in your accounting software and keeping the money, you will need to work through your state’s unclaimed funds laws.
• Checks that have been outstanding for over six months are considered “stale” and cannot be cashed.

• SoFi does not guarantee or endorse the products, information or recommendations provided in any third party website.
• Freezing an account will prevent all outstanding checks from clearing.
• Another thing a person can do to prevent a stale check from clearing is to freeze their account.
• Other issuers may not charge fees, but they must eventually turn unclaimed assets over to the state.
• But the obligation to pay still exists, so it’s best to deal with payments as soon as possible.

This could lead to the check bouncing — a bounced check occurs when the you can still deposit a stale dated checks? account holder has insufficient funds. These checks are returned to the bank and the issuer is charged a fee as a penalty. In some situations, the recipient can also be charged a fee in addition to having to refund the deposit.

Stop Payment

It is at the discretion of the individual bank to choose whether or not to cash or deposit an old check. If the bank is familiar with the issuing account and knows that the account holder can support the check balance, the bank can choose to deposit or cash the check anyway. So, although banks can still honor old checks, honoring them is determined on a case-by-case basis. As a business owner, it can be a wise move to try to reach out to the recipient of an uncashed check before six months pass after the date issued. If somebody worries that a check got lost, they may decide to stop payment—an order not to pay a check that has been issued, but not cashed—on that check. The bank will then reject your deposit, and it’ll bounce back to your bank unpaid.