Can You Deposit a Check Before the Date
You're writing a check to your landlord, simply y'all don't have enough money in your account. So you date the bank check a few days in advance — also called postdating it — hoping your paycheck will clear by then.
Bad news: The check date won't delay anything; your landlord can still greenbacks the check equally soon as they receive information technology. Here'southward what yous need to know about postdating and what y'all tin can practice instead.
Is it illegal to postdate a check?
"From a criminal police perspective, in that location is zilch inherently illegal about postdating a check," says Eric Hintz, a criminal defense force attorney in Sacramento, California.
Hintz says that simply criminal intent, such as intentionally not having enough coin for a payment, tin can be grounds for check fraud.
However, postdating a check can lead to inconveniences and ill feelings for the payee, such every bit when a tenant sends a hire check and may or may not have the funds ready to be withdrawn.
"Information technology's kind of a tricky scenario," says Matt Foster, founder of the rental property search site iRent and a landlord in Ventura, California.
He receives checks from some renters on the 28th or 29th of the month that are dated for the first of the next month. He suspects his tenants do this to continue him from cashing their hire checks before they've been paid, so their rent checks don't bounce.
Luckily for them, Foster waits to cash postdated checks, merely he isn't legally obligated. And in nigh cases, neither are banks.
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What are bank rules on postdated checks?
Banks and credit unions generally state rules near postdated checks in their account disclosures. Some of the biggest banks, for example, note specifically that they can honor checks that are made out for future dates.
The Uniform Commercial Lawmaking , a collection of business laws adopted or adapted by many states, gives fiscal institutions the right to process a correctly written bank check with a future appointment. But you can inquire your bank to filibuster cashing a specific cheque, and, depending on your country and the bank, it might comply.
What'due south the worst that tin can happen if I postdate a bank check and it gets cashed?
If y'all write a check and don't have enough money in your account when it's cashed — whether or not information technology'south postdated — your bank can cover the payment or let the bank check bounce based on its overdraft policy . If the cheque goes through, you'll pay an overdraft fee. If it doesn't go through, the recipient might charge you tardily fees and a bounced-check fee. Only usually it doesn't get much worse.
If you are concerned about overdrafting — and you'd rather not deal with a returned check and your landlord's ire — consider switching to a banking company with a solid overdraft policies. All of these charge lower than average overdraft fees and offering free means to avoid that fee while still paying your bills.
Banks with friendly overdraft policies
| Depository financial institution | Overdraft fee / frequency | Free, automatic transfer from linked account? |
|---|---|---|
| Ally Bank 4.5 NerdWallet rating | $25 / Once per day | Aye, from a coin market or online savings account |
| Upper-case letter Ane 360 iv.5 NerdWallet rating | $35 / Upwardly to four times per twenty-four hour period if account is overdrawn by more than $5 | Yes, from savings + Overdraft line of credit; y'all pay interest only on the amount y'all use + I-day grace period to correct overdraft |
| Notice Banking company five.0 NerdWallet rating | $0/Northward/A | Yes, from a coin market or online savings account |
| Charles Schwab Bank 4.5 NerdWallet rating | $25 / Up to four times per day | Yeah, from an online savings or brokerage account |
| TIAA Bank 4.five NerdWallet rating | $30 / Up to twice per twenty-four hour period | Yes, from a money market or online savings business relationship |
How do you lot delay or end a check payment?
Consider these three strategies:
-
Talk to the recipient. Tell the person receiving your cheque — your landlord, a merchant, a friend or family member — near your situation. Detect out if he or she volition have payment later on.
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Schedule an electronic transfer, such as an online neb payment. This is a much more precise mode to make future payments, and you won't take chances sending money before you're ready.
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Request a stop payment. Your depository financial institution provides this service, unremarkably for a steep fee , just yous must requite information technology notice. The corporeality of notice depends on your bank.
It's risky to rely on postdating or processing delays to ensure your check clears. Fiscal institutions now send digital pictures of checks to other financial institutions, so they tin exist cashed more quickly.
"In short," says Mathew Dahlberg, a financial advisor at Main Street Investments in Kansas City, Missouri, "if you don't have the money in your checking account, then don't write the bank check!"
Source: https://www.nerdwallet.com/article/banking/postdated-check
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