If a check writer doesn’t want the payee to be able to cash a check immediately, they may choose to postdate it: On the date line, they would simply write in a future date. This can be helpful if someone needs to deliver a check before they have the funds necessary for the check to clear in their account.
Postdated checks are usually legal, unless they are being used to defraud the recipient. Learn more about how this payment process works and why some people postdate checks.
Key Points
• Postdated checks are typically legal in the U.S., but laws vary by state and they can be illegal if intended to defraud the recipient.
• Writing a postdated check involves filling in a future date, ensuring that the payee cannot cash it until that date arrives.
• If a postdated check is cashed early and there are insufficient funds, it may incur overdraft fees for both the check writer and the payee.
• Alternatives to postdated checks include scheduling online payments and setting up payment plans with businesses to avoid cash flow issues.
• Understanding the legal implications and alternatives can help individuals make informed decisions regarding the use of postdated checks in financial transactions.
What Is a Postdated Check?
When someone writes a postdated check, they fill in a future date on the check instead of the current date. A payer might do this so a check can’t be deposited until that later date (when they’ll have the funds available in their checking account).
This process can come in handy if you want to mail a check to pay a bill before it’s due. Say the bill is due on the 19th, but you are mailing it on the 15th. You might postdate it for the 19th. You know the check needs a couple of days to arrive and then be deposited. This can also be a good move if you know your paycheck hits on the 17th and will help cover the check.
💡 Quick Tip: Make money easy. Enjoy the convenience of managing bills, deposits, and transfers from one online bank account with SoFi.
Are Postdated Checks Legal?
Usually, postdated checks are legal in the U.S., but it’s worth verifying the rules in the state where the check writer lives. Note that these guidelines may not cover cashier’s checks or traveler’s checks, which have their own rules and limitations.
Also worth mentioning: If a check is postdated with the intention of defrauding the recipient, then it could be illegal. Since postdating is sometimes used in this way for fraudulent purposes, think twice before agreeing to accept a postdated check, especially from someone you don’t know well.
Recommended: How to Verify a Check Before Depositing
How to Write a Postdated Check
Writing a postdated check is the same as writing any other check. You fill out the name of the payee, the amount of the check in words and numbers, a memo if you like on the line at the lower left, and sign the check.
The only difference is that instead of putting the current date in the space on the right, you put a future date. This date is often just a few days or a week in the future.
Example of a Postdated Check
If today’s date were September 1st, 2024, and you wanted to write a check for $100 to your friend Susan Jones to repay her for a loan, here’s how you might postdate it:
• You would write “Susan Jones” after the “Pay to the Order of” wording.
• Next to it, to the right, in the space with the dollar sign, you’d write, “100.00”
• Under that, you’d fill out “One hundred and 00/100 cents” on the line for the amount in words.
• You can add a memo at lower left, if you like, such as “loan repayment.”
• Now, for the postdating part: If it’s September 1st but you don’t want the check to be cashed until the 5th, you’d write “September 5, 2024” on the date line at upper right.
The idea here is, you don’t want Susan to deposit the check until the 5th, even though the current date is the 1st.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 4.00% APY on savings balances.
Up to 2-day-early paycheck.
Up to $2M of additional FDIC insurance.
What Happens When a Postdated Check Gets Cashed Early?
Generally, the payee has to wait to cash a postdated check until the date specified on the check arrives. That being said, some financial institutions may cash a check prior to that date.
• If there are sufficient funds in the check writer’s account, the check will be paid.
• If there isn’t enough money to cover the check’s amount, the check will be returned. This typically incurs overdraft or NSF (nonsufficient funds) fees, possibly for both parties.
For this reason, even if a bank or credit union is willing to cash a postdated check before the date written on the check, the payee may be better off waiting to cash it. The odds are that the payer added a postdate because at the time they didn’t have the funds available in their account to cover the check.
Recommended: How to Sign Over a Check to Someone Else
Alternatives to Postdated Checks
Check writers who want to buy some time until a deposit to their account clears have other options besides postdated checks.
• Online and Automatic Bill Payments: One option for making future payments without having to postdate a check is to go digital. The payer can go online to schedule a bill to be paid on the exact date of their choosing. As a bonus, there’s no need to order checks or manage a checkbook with this payment method.
Also, at your request, some businesses — including mortgage, utility, and credit card companies — can change the due date of your monthly bill to one of your choosing. For instance, if you get paid on the first of the month, you can request that the due date of your rent or mortgage payment always be three days later. That way, you can set up automated bill pay without worrying about your transaction clearing.
• Payment Plans: Before you consider postdating a check to avoid overdrawing your checking account, ask if the business will offer you a payment plan. Some companies will allow individuals to make smaller, incremental payments over time rather than one big payment. Make sure to find out first if the payment plan involves a fee or interest.
The Takeaway
A postdated check is the same as a standard check, but instead of putting the current date on it, the check writer fills out a future date. This is often done with the intention that the payee will not cash the check until that future date, when funds are available.
As you manage your money, it helps to have the right banking partner.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
What is the meaning of a postdated check?
A postdated check is filled out with a date in the future. The meaning is that it is not intended to be processed until the future date written on it.
Are postdated checks illegal?
No, it’s generally not illegal to postdate a check. That said, it’s a good idea to learn about the laws governing postdating checks in your area. Postdating a check can be considered a crime if the payer’s account does not have the required funds to process the check and if they intended to defraud the payee when they issued the postdated check.
Can a postdated check be returned?
If a postdated check is deposited (whether before or after the date on it) and there aren’t sufficient funds to cover it, the check may be returned unpaid.
Photo credit: iStock/AndreyPopov
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
This article is not intended to be legal advice. Please consult an attorney for advice.
SOBK-Q224-1920411-V1