But figuring out what to do if a check resurfaces may seem confusing, especially if they resurface months, or even years, later—perhaps well after their expiration date. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. Though you want to avoid letting a check go out of date, there are some important considerations for a check that has become outdated. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
What Happens When a Check Is Stale Dated?
The possibility of clearance of the business amount lies with the bank itself. A stale, or stale-dated, is an old check that has not been cashed for over six months. Even though banks or other financial institutions may allow you to deposit or cash it, they’re not obligated to do so by law. Make sure to review your bank statement to ensure no checks you’ve written go stale.
How to understand if the check has gone stale?
Before cashing a check after the requested time frame, consider the reason for the payer’s request. It might be the case that they’re living on fixed income and won’t have the funds available after the specified time frame. You may end up getting charged a deposit item return fee if that’s the case. Banks are still allowed to process a stale check as long as the institution deems the funds are good. A Federal Reserve regulation says a bank doesn’t have to deposit a check if it has reason to doubt that it’ll be able to collect the money from the paying bank.
How to Avoid Outstanding Checks
If you ever come across an old check, the best option might be to contact the issuing bank or the check’s issuer to determine its current status. Santander Bank, for example, charges $0 a check, while at Bank of America, the fee is $12. Plus, the person who wrote the bounced check might be charged a nonsufficient funds fee. The offers that appear on this site are from companies that compensate us.
- Even though banks or other financial institutions may allow you to deposit or cash it, they’re not obligated to do so by law.
- A “stale” check — one that hasn’t been cashed within six months of the original issue date — can cause you problems and cost you in bank fees.
- The eRoutingNumber™ database uses many different sources and has evolved since 1998, and now utilizes user reporting to keep the data in check.
- They should act within that time period – to deposit or cash the check.
- Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site.
- Cashing a check promptly ensures that you can access the funds without issues, such as the check bouncing or having it go stale.
- Certified checks are personal checks from a bank account owner who has drawn on the account and had the bank guarantee the check.
Stale-Dated Checks Bank Checks 101
In basic terms, a check becomes stale if it has been in one’s possession for 180 days or more and has not been cashed or deposited. After six months from the day a check is issued, checks may not be deposited into one’s checking account. If a person has been given a personal or business check, it is important to understand that the check has a limited period during which it is valid. Most personal checks have a maximum time frame in which they can be presented to a bank before they become stale or invalid.
- “The most important thing is paying attention to the wording that is directly before the date that you see,” said Valerie Peterson with the Foodbank of Siouxland.
- Be considerate — call or text the payer to let them know your intent.
- “Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity.
- The six-month rule usually applies to personal and business checks, including payroll ones.
- For example, payments may show as being paid but if the cash has not yet been debited from the account, there may be inconsistencies worth reconciling.
Status of Stale Dated/Post Dated Checks
When the bank receives the full amount requested, it deposits it into the payee’s account. Even if banks are only legally required to honor checks for a six-month period, it is usually a good idea to avoid any potential problems by depositing checks when you receive them. And if you fear that a check you have written has been lost or stolen, you should move promptly to cancel the check with your bank. Banks don’t have to accept checks that are more than six months old. Banks are still allowed to process an older check, if the institution believes the funds are good.
Examples of Expiration of Checks by Type
Specifically, any person who is authorized to draw on an account can ask their bank to flag the account to stop the payment of the outstanding check. A stop-payment order is designed to stop the check from being processed and prevent the withdrawal of funds from the account to pay the check. If the stale check is returned for any reason, then a person’s bank may charge a fee for returning the check to the person. They may then reverse the deposit if the funds were not placed on hold. Proper management of outstanding checks involves tracking, reconciliation, timely communication, and ensuring sufficient funds are available to honor the checks when presented for payment. If a check remains outstanding for an extended period, it may become stale-dated, and the bank may refuse to honor it.
Key Differences Between Stale Cheque and Post Dated Cheque
In this article, we’re sharing whether you can cash a stale dated check and answering common questions we receive on the topic. Treasury (a federal tax refund, for example) what does stale dated mean are good for 12 months after the date they’re issued. A check from a state government is generally valid for six months to a year, though that can vary by state.