A check that is not cashed within a certain timeframe (usually six months) is considered a stale-dated check. Banks and other financial institutions are not obligated to accept stale-dated checks (also just known as “stale checks”).
Many banks may, however, still honor stale-dated checks, but if the account the check is drawn against has been closed or has insufficient funds, you could wind up with a returned check, plus a fee. It’s a wise financial move to cash any checks that you receive in a timely fashion. Learn more about stale-dated checks here.
Key Points
• A stale-dated check is one not cashed within a certain time period — typically 180 days, but it may be considered stale sooner.
• Banks are not obligated to honor stale-dated checks, though some may choose to do so.
• Depositing a stale-dated check could lead to the check being returned and incurring a fee.
• Contacting the issuer for a replacement or checking bank policies can help avoid issues with stale checks.
• Stale checks may be subject to escheatment laws, where unclaimed funds are turned over to the state.
Defining Stale-Dated Checks
A stale check is one that has not been cashed after a certain period of time. While there is not a single, universal period of time that makes a check “stale,” six months is a common amount of time that a check is good for. The UCC (or U.S. Uniform Commercial Code) doesn’t require banks to cash a check older than that — though it doesn’t forbid them from cashing checks that are that old, either.
Stale-dated checks can cause baking issues. Your own bank might reject a stale check that you try to deposit to your bank account if they deem that too much time has passed since it was issued. Or, they might accept it and the issuing bank might not pay the check. For example, the account the check was drawn on could be closed or lack sufficient funds.
Some stale checks may be handled under what are known as escheatment laws.
U.S. Escheatment Laws
Escheatment is the process by which banks and other financial institutions turn over unclaimed property to the government. All states have created programs that handle this unclaimed property and attempt to return it to its rightful owners.
At a certain point, stale checks can reach the time period set by the state (the one where the issuing bank is) and are then handled under escheatment laws.
So, say you were issued a refund check from your health insurance provider, reimbursing you for some medical services you received. If you misplace that check for a couple of years and then find it when moving, you may have trouble depositing it. The check may no longer be able to be cashed, and the funds may have been turned over to the state. You might have to find the unclaimed money by searching online.
Recommended: What Happens If a Direct Deposit Goes to a Closed Account?
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 4.20% APY on savings balances.
Up to 2-day-early paycheck.
Up to $2M of additional FDIC insurance.
How to Approach a Stale-Dated Check
If you have a stale-dated check in your possession, there are a few steps you’ll likely want to take:
How to Identify a Stale-Dated Check
The first step is identifying and confirming that you have a stale-dated check. Most checks reflect the date the check was written in the upper righthand corner. A good rule of thumb is that checks become stale six months after the check is written. (That can be true even if the check is printed with “void after 90 days” on it.)
Types of Checks That Can Go Stale
Most types of checks can go stale — personal checks, business checks, and government checks are examples of checks that can go stale.
Here are a couple of exceptions to the six-month “good for” policy:
• A check from the U.S. Treasury (such as a tax refund you might have received) are typically good for one year vs. six months.
• Certified checks do not go stale or expire, although they may be subject to escheatment laws.
• Traveler’s checks, while not so commonly used these days, usually don’t expire as long as the issuing bank is still in business.
Risks of Cashing a Stale-Dated Check
If you have a stale or outstanding check, there are a few risks to cashing it that you’ll want to be aware of.
• The first risk is that it is possible that your bank may not honor stale checks, especially those over six months old.
• The second risk is that the check may no longer be good. As noted above, the issuing bank may not cash the check. The account it’s issued against could be closed or may not have enough money in it to cash your check. This could lead to the check being returned and you possibly owing a bank fee.
It’s worth noting that a valuable option can be to go back to the person or business who issued the check, explain the situation, and request a new replacement check. Yes, it can take a bit of effort, but it may yield what you are looking for: a fresh check that you can cash.
Can Stale-Dated Checks Be Deposited?
It’s possible that a stale-dated check can be deposited at your bank, but whether the funds will be able to be transferred from the issuing bank to your account can depend on a number of different factors. Remember:
• Your bank has the option to refuse a stale check, so it’s wise to check with your financial institution first to find out its policy before you try to, say, mobile-deposit the check.
• The issuing bank may not be able to transfer the funds, as noted above. The account could have been closed in the interim, or it might have insufficient funds. You could wind up with a fee for the check being returned. Again, you might contact the bank (this time, the issuing one) to inquire whether the check can be deposited.
These steps can save you time, fees, and frustration when dealing with a stale check.
Recommended: Where to Cash a Check Without Paying a Fee
How Business Owners Are Affected by Checks Going Stale
If you are a business owner who has written a check that has never been cashed, it doesn’t mean that the money reverts back to you. Instead, it is possible that the money now belongs to the state per escheatment laws.
Rather than just reversing the charge in your accounting software and keeping the money, you will need to work through your state’s unclaimed funds laws. Failure to do so may open you up to fines and/or legal trouble.
As a business owner, it can be a wise move to try to reach out to the recipient of an uncashed check before six months pass after the date issued. This could remind them to cash the check. (If you do this after six months have passed and they reply, you might work on a replacement check for them.) Following through in this way could save all involved from a challenging and time-consuming process to get the money to the intended recipient.
How to Avoid Stale-Dated Checks
The best way to avoid stale-dated checks is to cash your checks as soon as you receive them. Thankfully, mobile deposit and other technological advances have helped make depositing checks a quick and simple process.
If you do find an old check that was issued many months or years ago, it’s probably best to not just deposit it. Instead, contact the issuer to see if they might stop payment on the check you have in hand and issue a new check. Or you might reach out to your own bank and the bank that issued the check to hear their policies on stale checks. That can help you avoid having the check returned and your account debited a fee.
Recommended: Emergency Fund Calculator
The Takeaway
A stale-dated check (also known as a stale check) is one that is not cashed within a certain time frame after the check was written, typically six months. Banks, credit unions, and other financial institutions are not required to honor stale checks.
If you have a stale check, it’s best to contact the person or business that issued it, if possible, to see if they can provide a replacement. Failing that, check with your bank and the issuing bank to see what their policies are for stale checks. Otherwise, the check might be returned after you deposit it and a fee assessed.
Looking for a bank that partners with you on checking and savings accounts? See what SoFi offers.
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
How do you fix a stale-dated check?
If you have a stale check (one made out to you over six months ago), one option would be to contact the check’s issuer. They may be able to stop payment on the original check and reissue the check. If you’re not able to contact the original issuer or they are not willing to reissue the check, ask your bank and the issuing bank if the check can still be deposited. Some banks will honor stale checks up to a point.
What are a bank’s obligations with respect to stale checks?
Generally speaking, a bank is not required to accept or cash a stale-dated check that it receives. While the time period for when a check becomes stale can vary, six months is customary. However, different banks may have different rules or policies with regards to stale checks — it can be wise to check with your bank and the issuing bank before you try to deposit a stale check.
Is depositing stale-dated checks illegal?
With a stale-dated check (meaning one that was issued more than six months ago), generally it is not illegal to deposit it, as long as you are not doing so with fraudulent intent. However, banks may not cash a check that is stale-dated. If you have a stale check, you might contact the issuer for a replacement, or ask your bank and the issuing bank for guidance.
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 4.20% 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 4.20% 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 4.20% 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 10/31/2024. 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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
This article is not intended to be legal advice. Please consult an attorney for advice.
SOBNK-Q324-076