How long is a check good for?
To answer the above question; Checks don’t expire per se but just become “stale“. It’s said that bank checks are widely known to get stale at six months from the issue date and banks are not obliged to cash such checks again by law. This mainly occurs when they are personal checks.
It is easy to misplace a check after it has been given, probably in between books or slipped into or under something or somewhere, for it to later resurface months or even years later. Banks are only required to honour checks within the six months mark, although they can help contact the account holder(which is the “waiting period“) if they could proceed with honouring of the check. Or they simply bounce the check without reaching out.
Also, a personal check issued might have been forgotten after not being cashed and since most if not all checking accounts have zero interest, that is to say, only little amount is kept in such cases for bills. As a result, when such a check resurfaces, there may not be enough money in the account to cover such checks. It’s this same reason banks are meant to call the issuer before cashing this outdated checks.
Types of checks and their expiration dates
Personal checksCashier’s checksCertified checksElectronic checks Traveller’s checksBusiness checks U. S. treasury checks
1. Personal checks:
These checks are given to account holders by their financial institutions. They usually have the Six months validity period.
2. Cashier’s checks:
With these checks, money is withdrawn from the financial institution’s account to complete the transaction. They are signed by a representative from the institution, such as a teller. The account owner debits the amount to their bank for the transaction and then the check is drafted, which makes it guaranteed by the financial institution. Cashier’s checks provide safety the individual obtaining the check will receive the full payment owed to them. Cashier’s checks are usually for larger assets, such as a deposit on a house. The expiration date is usually written on them, which isn’t more than ninety days.
3. Certified checks:
Has some similarities to a cashier’s check, certified checks are insured by the bank or financial institution. However, funds are pulled directly from the account holder’s checking account instead of from the bank’s funds, as in the case of a cashier’s check. The bank or credit union have to verify the account holder’s signature and confirm there are enough funds in their bank account to cover tthe transaction about to be made.
4. Business checks:
These are checks written on behalf of corporations, they are often printed with “invalid after” dates near the line close the signatures. Occasionally the validity period is as long as six months, but it can be much less. Ninety days is a typical time frame, particularly for large checks such as payroll contributions.
5. U.S. Treasury checks:
These are Checks issued by the U.S. Treasury, they can be deposited or cashed within one year after the date of issue.
6. Electronic checks:
These are commonly known as an “eCheck” used for the online transfer of funds from the payer’s account to the payee’s account. Doesn’t include any paperwork because it’s entirely online, also making it the quickest form. A lot of online banking accounts give features for recurring eCheck payments for bills such as utility payments.
7. Traveller’s checks:
These checks are also known as “traveller’s cheques”, are used by international travellers to pay for products and services or for them to be changed into a local currency. These checks have become obsolete because of the use of credit and debit cards. They come in various limited denominations in different currencies, making them insurance in countries with varying exchange rates, and they do not have an expiration date.
Conclusively, Even if banks are legally required to honour checks in six months, it is better to avoid any possible problems in the future by depositing or cashing the checks immediately after you get them. And on the contrary, if you have misplaced any written check, you should report such cases on time so it can be cancelled by your bank.
What are checks?
A check is a written, dated, and signed tool that authorizes a bank to pay a particular amount of money to the bearer.
Types of checks?
Personal checks, cashier’s checks, business checks, certified checks, traveller’s checks, U.S. Treasury checks and electronic checks
What do I do with an expired check?
Ask for a reissue from the banks or the account holder.
