Wondering if that old check in your drawer is still valid? Checks don’t last forever, and their validity usually depends on the check type and the issuer’s guidelines. The expiration date shows you how long a check is good for before banks or other financial institutions can refuse to cash or deposit it.
This Remitly guide will help you understand the validity of different types of checks, what to do with expired checks, and tips to avoid the issue altogether.
Expiration dates for different types of checks
Checks have specific expiration rules outlined in the Uniform Commercial Code (UCC), which governs commercial transactions in the US. Understanding these regulations can help prevent nasty surprises at the bank. Here’s a quick overview of check types and their validity:
| Check type | Validity |
| Personal checks | 6 months |
| Business or payroll checks | 6 to 12 months |
| US Treasury checks | 12 months |
| State or local government checks | 6 to 12 months. |
| Cashier’s checks | No set expiration, but often 3 to 6 months |
| Certified checks | No expiration, but stale after 3 to 12 months, depending on issuing institution. |
Personal checks
Personal checks are usually valid for six months from the date they’re written. After this period, they’re considered stale and banks may refuse to cash or deposit them.
Business checks
Business checks, including payroll and vendor payments, usually remain valid for six months, unless marked as valid for up to one year. Some businesses may print “VOID after 90 days” on their checks to encourage prompt cashing, but banks often still honor them for up to 180 days.
Government and US Treasury checks
State and local government checks include benefit payments and state tax refunds. Depending on state or local laws, they’re often valid for six months, possibly up to a year.
On the other hand, US Treasury checks are for government-issued payments, such as Social Security, disability, or veterans’ benefits. They are usually valid for one year.
Cashier’s checks and certified checks
Cashier’s checks are bank-issued instruments drawn from a financial institution’s funds, while certified checks are personal checks guaranteed by the issuing bank. Neither has a fixed expiration date, but many banks consider them stale after 90 to 180 days. Policies vary by institution, so contact the issuing bank for specific guidelines.
Traveler’s checks and money orders
Traveler’s checks don’t expire as long as the issuing bank or financial institution is still in business. You can use these checks to make purchases, pay bills, or even deposit funds into bank accounts, making them a flexible option even after long periods of time.
Money orders also don’t expire, but fees may apply after a certain period. For example, USPS money orders never expire. However, financial providers charge service fees for those older than one to three years.
Handling old or expired checks
If you discover a check has passed its expiration date, there are a few ways to manage the situation effectively.
Can you cash a check after its expiration date?
Banks are not legally required to process checks after the expiry date, but some may accept them under certain conditions:
- Sufficient funds: The check writer’s account has enough money to cover the transaction. If funds are non-sufficient, the bank will reject the check regardless of the issue date.
- No stop payment orders: If the issuer has requested a stop payment order due to loss, fraud concerns, or a cancelled arrangement, the check will be declined.
- Favorable bank policy: Some banks permit cashing stale checks, especially if the check can be verified or the issuer confirms it’s still valid.
Risks of cashing an expired check
Even if accepted, some stale checks come with potential risks:
- Processing fees: Banks may charge fees for handling old checks, especially if they require extra verification. These fees can sometimes be substantial enough to make cashing the check less beneficial.
- Rejected transactions: Old checks could still bounce, resulting in returned-check or overdraft fees. If rejected, you may also face delays in resolving the issue, further complicating your finances.
- Misunderstanding the issuer: Depositing a stale check without notifying the issuer could lead to confusion, especially if it was forgotten or tied to a contract. In some cases, the issuer may no longer have funds available to honor the transaction.
Steps to take if you have a stale check
To avoid issues, follow these step-by-step procedures before attempting to deposit or cash an expired check:
- Step 1: Check with your bank. Before depositing a stale check, ask your bank about its policy on expired checks. Failure to do so could lead to rejected transactions, extra fees, or a temporary hold on your account.
- Step 2: Contact the issuer. Reach out to the issuer to confirm if the check is still valid. If it is no longer usable, you can discuss other ways to receive payment. It’s good practice to void the original check to prevent unnecessary issues.
Issuer’s role in stale checks
Suppose you misplace a check or it becomes too old to use. The issuer can take certain steps to manage the situation efficiently, prevent financial confusion, and maintain trust.
Issuing a replacement check
If a check is no longer valid due to expiration, the issuer can cancel it and reissue a new one. Voiding the original check officially protects both parties from duplicate payments or potential fraud. Also, sending the new check through a reliable delivery method helps prevent further delays or issues.
Monitoring account balances
The check issuer is responsible for ensuring the account linked to a check has enough cash to complete the payment. If the account lacks sufficient funds, it can damage the issuer’s financial credibility. Regularly checking account balances helps avoid cash flow problems and prevents unnecessary complications.
Proactive communication
Letting the recipient know the status of the check—whether a replacement is on the way or there’s a delay—improves coordination and helps avoid misunderstandings. It’s particularly convenient for businesses dealing with time-sensitive payments. Clear communication maintains trust and prevents confusion between the issuer and payee.
While understanding the issuer’s responsibilities is crucial, you need to know what happens if a check is never cashed and how it impacts both parties.
What happens if a check is never cashed?
An uncashed check can have long-term consequences for both the sender and the recipient, especially regarding compliance, record-keeping, and legal rights.
For the issuer
- Outstanding liability: Uncashed checks remain on the issuer’s books as unpaid liabilities. Over time, this can affect financial reporting, complicate audits, and raise concerns for investors and stakeholders.
- Escheatment laws: States require unclaimed funds, including checks, to be turned over after a set period, usually one to five years. If businesses fail to report them properly, they may face penalties, legal issues, or reputational damage that could erode customer trust.
- Cash flow constraints: Funds tied up in old, uncashed checks are still set aside by the issuer. This may reduce the cash the institution has to run operations, make timely payments, or invest in growing the business.
- Increased fraud risk: Unclaimed checks left unaddressed for too long can be intercepted, altered, or cashed fraudulently. Cancelling stale checks promptly and regularly reviewing unpaid checks helps reduce these risks.
For the recipient
- Loss of funds: If a check is never deposited and the statute of limitations expires, the recipient may not have the legal recourse to claim those funds, even if the issuer is willing to pay.
- Missed financial opportunities: By not cashing a check, recipients miss the chance to use those funds for investments, paying down debts, or growing emergency savings, leading to indirect financial losses or increased interest expenses.
- Legal and compliance hurdles: In regulated industries or contractual payments, failing to cash a check might breach the terms of agreement or regulatory timelines, potentially complicating legal and financial outcomes.
To avoid these issues, acting quickly on received payments and tracking outstanding checks ensures better financial oversight.
Preventing issues with check expiry
Early action is the best way to eliminate problems associated with expired checks. This means cashing checks as soon as they’re received or replacing them before they become stale. Other ways to prevent these issues include:
Regularly reviewing checking accounts
Set up automated reminders to review your checking account statements regularly. This way, you will identify outstanding checks before they reach their expiry date.
Use digital tools or money apps to log check numbers, issue dates, and amounts for easier tracking. Many banks also provide notifications for check deposits or clearances, helping you stay on top of any potential issues with expired checks.
Communicating with the check writer
After receiving a check, confirm the expiration terms with the issuer, especially if it’s from private businesses or government agencies. These organizations may have conditions different from standard banking timelines. Keep records of any conversation about replacements, extensions, or uncashed checks, as the documentation could help resolve future disputes.
Using alternative payment methods
Choose direct deposit to avoid the risk of check expiration. This payment method is often faster and more reliable, too. Other options, like bank transfers or platforms such as Remitly, also offer quicker, expiration-free transactions.
If using checks is necessary, consider using electronic checks (eChecks). They process in less time and may have longer or no expiration periods compared to other types, like paper checks.
Stay informed about local and federal regulations
Different jurisdictions have varying rules for expired and uncashed checks, so be aware of your state’s laws to avoid issues. Businesses may also define specific policies for personal checks. If you receive business-related payments, knowing these guidelines can help prevent unexpected problems. It’s also wise to contact your bank for any state-specific requirements that could affect how checks are processed.
Establish clear payment terms with clients and vendors
Does your business strategy involve regular dealings with checks? It’s advisable to clearly define payment terms, including expiration dates, in contracts or agreements with clients and vendors. This helps reduce confusion and provides legal clarity if a check goes uncashed.
Including specific deposit deadlines can further prevent issues. For example, you could say, “Checks must be deposited within 60 days of issuance.” Setting these expectations upfront supports smoother financial transactions and reduces the risk of disputes.
FAQs
Is a check still good after three years?
Most checks are no longer valid after a six-month period and are usually considered stale after three years. This means they may be declined by banks or other financial institutions. But you may be able to cash a three-year-old government-issued or cashier’s check; they often have extended validity periods, depending on the issuer’s policies. Contact your bank to see if they’ll still process different types of checks.
What happens if you don’t cash a check in 90 days?
If you don’t cash a personal check within 90 days, it typically becomes stale, and most banks will refuse to accept it. The case might differ for business, government, or cashier’s checks, but it’s a good idea to cash them within the specified time frame to avoid potential issues.
How long are temporary checks good for?
Temporary checks are usually valid for short periods between 60 and 90 days, depending on the bank’s policies. After that, they may expire or be replaced with permanent checks. Be sure to check with your bank for specific validity rules.