Post Dating Checks


Two potential reasons for this include: The check writer is paying for something ahead of time — before the payment is due or the service has been completed, for example. Is it Legal to Postdate a Check? Not a written agreement: Just because it's legal doesn't mean things will work out the way you intended: The date that you choose to use is not part of a legally binding agreement between you and the person you wrote the check to.

Unless you set things up correctly with your bank, the bank is free to pay funds out of your account before the date shown on your check. If you plan to write a postdated check, ask for permission before doing so. If your payment is rejected, you might be unable to buy a product or service that you wanted, you might have to pay late-payment fees, or there might be other consequences. Can You Cash a Postdated Check Before the Date Shown? In most cases, you can deposit or cash a postdated check early.

Debt collectors and other businesses may be prohibited from processing a check before the date on the check, but most individuals are free to take postdated checks to the bank immediately. That said, if you agreed to wait before cashing a check, it might be illegal to do otherwise. Find out if the check was intentionally postdated, and figure out a solution. Banks in the U. Cashing or depositing checks: Cashing a postdated check might be a challenge. For more details, see How to Cash a Check.

Communicate with your payee about your needs and expectations for when the check can be deposited. Should the bank have accepted it? Practices may vary among banks, so you should check with yours to be absolutely sure of its procedures. However, Bank of America, California's largest bank, says it accepts checks regardless of the date they carry--with one key exception: The bank offers its customers the ability to purchase a "postdating order" under which the bank will delay payment on a postdated check.

Essentially, the order acts much like the flip side of a "stop-payment" order. The bank simply withholds payment on the check until the date specified by the check writer. Under a stop-payment order, the check is essentially voided for all future payment. Unless you purchase a postdating order, Bank of America says it is allowed under the state Uniform Commercial Code to honor all legally drawn checks presented to it for payment regardless of the indicated date.

Even if you write on the check that it is "void until" a certain date in the future, your instructions will not be honored by B of A without a postdating order. The bank notes that it also may not honor instructions that some businesses print on their checks, such as "not good after 60 days" or "not good for less than" a certain amount. Again, these orders require specific bank approval for which the bank may demand a fee.

Who Is Eligible for College Saver Bonds? Can you tell me more about the College Saver savings bonds and who is eligible for the tax breaks they carry? I am concerned that they are not as attractive as they once were. College Saver bonds are technically the same as any Series EE U. The bonds are already free of state taxes for all purchasers. When they were introduced several years ago, the bonds were immediately hailed as a great deal for upper-middle-class taxpayers because the income ceilings were, relatively speaking, quite high.

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Is it illegal to post-date a check?

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