What Is Floating a Check?

Floating a check involves writing a check for more than you have in your bank account, anticipating that you’ll have enough funds for the check to clear when it’s actually deposited. This differs from bouncing a check in that check floating is typically done intentionally, to take advantage of a period in banking when funds are in limbo.

Is it illegal to float a check?

A check’s float period simply refers to the time between when a check is deposited and appears in the payee’s account and when the money is withdrawn from the payor’s account. Floating a check is not typically illegal, though it may be in some cases. However, intentionally writing a check drawn on a bank account that does not have enough money to cover the check, with the intention of profit, may be considered check kiting, which is illegal.

What types of checks clear immediately?

Nearly all checks take some amount of time to clear, though the exact amount of time depends on the type of check and the policies of the bank in question. Cashier’s, government, and certified checks clear the fastest, sometimes on the same or next business day. Checks deposited with the same bank that they were written against also usually clear quickly.

How long can you float a check?

The float period, or the time between when a check is deposited and when it is actually deducted from the payor’s account, can vary somewhat. It is possible for checks to clear on the same business day that they are deposited, in some instances, or the float period may take several days. It is good financial practice to always make sure you have enough money in your account to cover any outstanding checks you have written.

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