Discovering an unredeemed check might seem like found money until you consider its expiration date. While some U.S. checks state how long you have to cash them on the check itself, others typically expire in a set number of days after being written. Not only does this encourage responsibility on the part of the check's recipient, it protects the issuer from overdrafts due to lack of funds if a recipient fails to redeem the check before it expires. Generally, you have at least six months to cash a check that does not specify its expiration.
Tip
When a check expires will depend on the type of check and the issuer. It's common, though, to have at least six months to check the check.
Expiration of Personal Checks
Both the U.S. Food and Drug Administration (FDA) and the American Dental Association (ADA) require toothpaste to have an expiration date. Each individual tube of toothpaste should have its own expiration date printed on the box and tube. It’s usually about two years after the toothpaste was manufactured. In most situations, a check is good for six months. But there are several exceptions, and there’s no guarantee that banks will reject checks after that time. The Uniform Commercial Code (UCC), which most states use as a model for state law, says that banks do not need to honor old checks, but they can do so under certain circumstances. Like government checks, payroll checks will often have expiration dates printed on them. If not, they usually expire six months after their issuance. Personal Checks.
The financial institution redeeming a check determines the expiration date of a personal check. The Uniform Commercial Code permits the accepting institution to decide whether it will redeem checks dated more than six months before the date you take the check to the institution. Since banks and other financial institutions typically use computers to process checks, a person might not review the transaction unless there is a reason such as a stop payment order or overdraft. Account holders have the option to stop payment on unredeemed checks but must pay a fee for the privilege.
Expiration of Business Checks
Unless writing on the check states otherwise, business checks, including paychecks, follow the same rules that apply to personal checks. However, many businesses include a statement on the check specifying that it is redeemable for a specific number of days after issuance. If the check does not state 'Not valid for deposit after 'x' amount of days' call your financial institution and ask what its rules regarding stale checks are. If it refuses the check because of its age, contact the issuer and request a replacement.
Expiration of Government Checks
Checks from the U.S. Treasury are valid for one year after issuance. The U.S Treasury issues checks from the Internal Revenue Service, Social Security Administration and any other federal agency. Payees must contact the paying agency to request a reissued check. The U.S. Department of the Treasury's website provides the contact information for the various agencies.
If you have a check from your state's treasury without an expiration date, you must contact the state's department of revenue to determine its expiration date and, if necessary, request that the state reissue the check.
Other Check Cashing Considerations
If you are able to cash a check past its expiration date, do not use the funds until you discover that the issuing bank honored the check. The issuing bank can refuse to pay for the check if the account holder placed a stop payment on the check, the account does not have the funds to pay for the check or the account is closed.
If you wrote the check, the only way to guarantee that you will not be liable for it longer than six months is to place a stop payment order on it. An oral stop-payment order expires after 14 days, and a written stop-payment order expires in six months. You must renew stop-payment orders every six months to ensure that you are not held liable for old checks; banks typically charge a fee for each order.
Handling of Unclaimed Money
Companies, banks and government entities must turn the money for unredeemed checks over to their state's unclaimed money department after a period determined by the state. This includes unredeemed paychecks, income tax refunds and cashier's checks. If you have an expired check, search the MissingMoney.com database or your state's unclaimed property department to see if you can still collect the amount owed.
Video of the Day
References
Resources
About the Author
Specializing in business and finance, Lee Nichols began writing in 2002. Nichols holds a Bachelor of Arts in Web and Graphic Design and a Bachelor of Science in Business Administration from the University of Mississippi.
MORE MUST-CLICKS:
Checks are cheap and easy tools for payments, but what happens when nobody deposits them? At some point, checks can expire. Still, the obligation to pay doesn’t go away, so it’s best to deal with payments as soon as possible.
Checks Written to You
Unless you have a government-issued check or certified check, it’s wise to deposit checks within six months. After that, you may want to ask for a re-issued check. Doing so prevents confusion at the bank and lets the check writer know that you’re ready to collect your money.
Checks You Write
Again, six months is a good rule of thumb. If somebody fails to deposit or cash a check you wrote, they will have a hard time negotiating the check after six months. However, you still owe the money, and banks might process the check anyway. If you write a replacement check, it’s wise to request a stop payment on the original check.
How Long Is a Check Good For?
In most situations, a check is good for six months. But there are several exceptions, and there’s no guarantee that banks will reject checks after that time. The Uniform Commercial Code (UCC), which most states use as a model for state law, says that banks do not need to honor old checks, but they can do so under certain circumstances.
Ultimately, it depends on the type of check involved and bank policies.
Types of Checks
Personal checks are typically valid for six months after the date written on the check. But banks might not notice the date, or they might choose to process stale-dated checks for customers.
U.S. Treasury checks, such as federal income tax refunds, are good for one year after issue. If you have old checks, you can contact the agency that owes you money and order a replacement.
State and local government checks can expire whenever state law allows. Contact local agencies for details, or to request a replacement check.
Cashier’s checks are complicated, and state law affects how long those checks are good for. However, most banks won’t accept a cashier’s check for deposit after 90 days because the issuing bank may return the check unpaid after that time. If you have a check that’s more than 90 days old, contact the issuing bank to get a new check.
Money orders typically don’t expire. But the money order issuer might start charging fees against the money order, eroding its value and eventually making it worthless. For example, Western Union charges fees to money orders after one year (or three years, depending on state law), so you can’t just deposit old money orders. Instead, you may need to contact the issuer to get any remaining value. Other issuers do not charge fees, but they must eventually turn unclaimed assets over to the state. Contact the money order issuer for details—it can get complicated.
For example, domestic USPS money orders are good indefinitely, but international money orders expire.
Traveler’s checks do not expire or lose value over time. As long as the issuer is still in business, you can use the checks.
Waiting Is Risky
You may have your reasons for holding on to a check written to you, but it’s best to deposit or cash checks as soon as you have a safe place for the money.
- Closed accounts: Eventually, the person or business that the check is from might switch banks. If you deposit a check from a closed account, the check will bounce, and your bank will charge you fees for attempting to deposit a bad check.
- Insufficient funds: When somebody pays you by check, they expect you to deposit the check soon. Presumably, they have funds available when they write the check, but that might change. They don’t expect the check to hit their account six months later, so they might not have money set aside for your payment anymore. Again, when the check bounces, you’ll owe fees.
- Stop payment: If somebody is worried about a check getting lost, they’re likely to stop payment on that check. Their bank will reject your deposit, and it’ll bounce back to your bank unpaid. That said, stop payments are one situation when it may actually work in your favor deposit a stale-dated check—because stop payment orders eventually expire.
Void After 90 Days
How Long Do Checks Last Before Expiring Day
Checks sometimes say they’re only good for 90 days (or 180 days). Whether or not that restriction is valid depends on several factors. Your bank may ultimately decide to ignore those instructions and process a check anyway (some courts have found the statements to be unenforceable, but don’t count on that in every case). Still, you’d be wise to honor any language on a check—either deposit the check quickly or contact the check writer if you can’t beat the deadline.
Do Checks You Write Expire?
When you write a check that goes uncashed, you may wonder what to do. You still owe the money, even if nobody claims the payment. In those cases, it’s best to keep the funds available in your account for at least six months. After that, leave the money alone or set it aside somewhere else for the inevitable day that you have to make good on the payment. Remember that a bank might accept the deposit and try to pull funds from your account at any time.
Unfortunately, you don’t get to keep money that you owe to somebody else just because they fail to deposit a check. At some point, you may have to turn the funds over to the state for safekeeping. Ask regulators about local escheatment laws for complete details.