Deposit Date Title For Free

This date on a personal or business check is crucial since it can dictate the last opportunity the payee has to deposit or cash it. Banks are not obligated to cash checks more than ?six months? after the check date. However, they may choose to do so anyway.

While a check may clear on the same day it's deposited, in many cases the full amount will be available in two business days or more.

A typical timeline is for a bank to make that $225 available the next business day, and the rest on the following business day. That means if you deposit a check on a Friday, you can expect $225 of the funds to be available in your bank account on Monday and the rest on Tuesday.

Your bank may hold a deposited check if there are insufficient funds in the payer's account or if the payer's account is closed or blocked for some reason. Banks usually resend checks with issues to the paying institution, but this results in a longer delay for the depositor.

Post-dated checks are perfectly legal. If they weren't, ?pay day? lenders, and other crude forms of credit, couldn't exist. Only ?properly payable? checks are supposed to be cashed by banks. But just about anything with the right signature on it is properly payable, including post-dated and overdrawn checks.

Banks may currently decide to place six types of holds on checks: Any amount exceeding a $5,000 deposit may be held. This ?remainder? must be made available within a reasonable time, usually two to five business days. Such deposits are considered large deposits.

So, yes, you can deposit a post-dated check before the date shown, but it isn't advised. Be prepared for the possibility that the check funds won't be available. Not only do you not want to incur an insufficient funds fee, you don't want to go through the trouble of obtaining a reissued check.