Oral instructions might be valid for 14 days, and you may be able to extend your bank’s monitoring time for up to six months with written instructions.
Communication saves money: It’s also a good idea to communicate with whoever you give the check to.
That said, if you agreed to wait before cashing a check, it might be illegal to do otherwise.
Ask why: It’s wise to communicate with whoever wrote the check – there’s probably a reason it’s postdated.
The payee’s bank will also charge fees, and you might be required to pay fees or other penalties for paying with a bad check (late fees are also a possibility if your payment isn’t processed on time). A rejected payment (or an unexpected withdrawal from your checking account) can cause numerous problems.
If you provide instructions to your bank and they pay funds from your account, your bank should be required to cover any overdraft charges that result, and you may have further recourse against your bank for other expenses you face.
Because there’s a possibility that the check won’t clear, you might have better luck depositing those checks.
That allows your bank to place a hold on the funds instead of handing over cash immediately.
It is illegal to write a check when you know you don’t have the funds to cover it, but things get a little fuzzy – and details depend on state law – when you postdate a check (assuming it is accepted as payment).A postdated check offers the promise of controlling the uncontrollable: As time marches forward, you may wonder what the date on a check really does.Whether you received a postdated check or you’re thinking of writing one, it’s important to know how they work — and that they often don’t work the way you might expect. People usually postdate checks when they want the recipient (the person or business receiving the payment, also known as the payee) to wait before depositing the check.To really prevent the funds from being paid out of your account before the date you choose, contact your bank before you write the check.Ask what you need to do to ensure that the check is not processed before you’re ready — especially if you don’t trust the payee.
For example, the IRS generally doesn’t accept postdated checks, so you may face tax penalties and interest if your payment fails.