Depositing Postdated Checks: What You Need to Know
Checks are "promissory notes," or a promise to pay, drawn on a bank on behalf of an individual or business. Checks feature an "effective date," or a day when the bank will pay the check.
Significance
A check dated tomorrow or any future date is known as a postdated check. A business or individual will write such a check with the intent of paying the check on, not before, that specific day.
Function
Depositing a postdated check a day early may cause the check writer's bank to attempt to pay the check immediately. If the check writer does not yet have the funds in his bank account, this will cause the check to "bounce," or be returned for nonsufficient funds.
Considerations
Checks usually take several days to "clear," or withdraw the money from the check writer's account. This means a check dated tomorrow will often not clear today.
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Check Hold Time: How Long Does Your Bank Wait to Clear a Check?
When you deposit a check into your bank account, it can take several days before your bank actually receives the money represented by the check. Consequently, banks can place a hold on your account in
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Depositing Checks to a Joint Account: What You Need to Know
You can deposit a check. It's not unusual for a check to be written out to just one spouse. A paycheck would be made out to only the employee, not the employee and their significant other
budgeting
- Cashing an Undated Check: What You Need to Know
- Depositing Business Checks: A Guide to Safe and Successful Transactions
- Cashing a Stopped Check: What You Need to Know
- Cashing a Check Endorsed by a Parent: What You Need to Know
- Cashing Checks with Insufficient Funds: What Banks Can & Can't Do
- Certified Checks: Can You Stop Payment?
- Cashing Checks at Banks You're Not a Member Of: What You Need to Know
- Unsigned Checks: Can a Bank Still Pay It?
- Verify Payroll Checks: A Guide to Ensuring Payment Validity
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