Cashing Old Checks: How Long Is A Check Good For?

Plus, the person who wrote the bounced check might be charged a nonsufficient funds fee. To make a case for punitive damages in a situation in which a bank wrongfully honored a stale check might be challenging. Again, only if the bank committed some type of outrageous wrong could a claim for punitive damages succeed. GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

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A person should know how long they have to cash or deposit the check before it becomes too old. They should act within that time period – to deposit or cash the check. Depending on the circumstances, a bank may refuse to honor the check and will not allow the person to deposit or cash the check. However, if a check is unprocessed beyond its expiration, the issuer might use the funds in other ways.

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This is often the best course of action if the check is too old to be redeemed or if the issuer refuses to reissue the check. Be sure to inform the issuer of your intentions to return the check, and provide them with your contact information so they can issue a new check or direct deposit. The best way to avoid stale-dated checks is to cash your checks as soon as you receive them. Thankfully, mobile deposit and other technological advances have helped make depositing checks a quick and simple process.

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However, it is important to note that some states have their own laws regarding stale-dated checks that may differ from the NIL. The statute of limitations is the time period within Certified Bookkeeper which a legal action must be taken. In the case of stale-dated checks, the statute of limitations varies from state to state.

What Happens if You Don’t Cash a Check?

We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. It’s also a good idea to monitor your account and keep an eye out for outstanding checks that you’ve written.

Some banks may do it, but they may charge a fee for depositing or cashing a stale check that is older than 6 months. To have sound knowledge about stale-dated checks, the employer must have a fair idea about how to find out if the check has turned stale. Businesses and even personal transactions are sometimes done using checks. Checks have been in use for a long time and are considered to be a convenient mode of transaction by most businessmen.

• However, some banks may refuse to honor stale-dated checks, so it’s best to check with your bank first before attempting to redeem the check.
• Since you owe the money to either the state or the property owner, plan to monitor uncashed checks and check in periodically with the payee.
• You can ask them to reissue the check or request a direct deposit instead.
• If you do receive a check, set a reminder to cash it within a reasonable amount of time.

They typically don’t expire but are often subject to state unclaimed property laws. States have different rules about when businesses must report unclaimed property, and the period before checks are considered unclaimed can vary. The Securities and Exchange Commission (SEC) suggests it’s often around five years, but it’s crucial to check your state’s What is Legal E-Billing laws to ensure that it is equal to that. The National Association of Unclaimed Property recommends sending a formal letter to business owners warning them that their property may become unclaimed. If informing the business owner doesn’t work, the state will step in, holding the account as a bookkeeping entry. Managing stale-dated checks is an important aspect of financial management for any business or individual.