Your hire is due in per week, and also you don’t need to miss the deadline. You need to ship the fee now, whereas it’s nonetheless contemporary in your thoughts. However you gained’t have the cash to cowl the fee till nearer to the due date.
So you set a verify within the mail right now, however you date it for per week from now. The owner will get your fee early, incomes you good-tenant brownie factors, however they will’t money it till you’re prepared for them to money it. Growth! Solved.
However not fairly. Postdating a verify isn’t the foolproof technique you would possibly suppose it’s.
What Is a Postdated Verify?
A postdated verify is a verify with a future date on it, not the date you wrote the verify. Postdating a verify is a approach to attempt to make sure you have sufficient funds in your account to cowl the verify when it’s cashed.
For example, say your electrical invoice is due on Jan. 15. You wish to maintain all of your month-to-month payments on the first so you may knock them out in a single fell swoop. However with all the opposite bills you’ll incur between the first and the fifteenth, you gained’t come up with the money for to pay the electrical firm till nearer to the due date.
So that you mail a verify to them on Jan. 1 however date it for Jan. 15. That tells them you don’t need them to money the verify any sooner than Jan. 15, even when they obtain it sooner.
Why Postdating a Verify Can Be a Dangerous Concept
Postdating a verify doesn’t assure the recipient gained’t money it early, even when they see it. It’s extra of a suggestion than a requirement.
Relying in your state’s legal guidelines, you would possibly be capable to notify your financial institution (orally or in writing) and ask them to not money the verify earlier than the date you wrote on it. Contact your financial institution to study its insurance policies.
However for probably the most half, as soon as the recipient endorses the verify, it turns into authorized tender and so they can money it instantly. Should you don’t have sufficient funds to cowl it, you might be hit with an overdraft or inadequate funds price. Plus, the recipient may cost you a late price when your preliminary fee doesn’t undergo.
Should you bounce too many checks, your financial institution would possibly shut your account and report you to ChexSystems, which may harm your probabilities of opening a brand new account.
Alternate options to Postdating a Verify
Postdating a verify isn’t the one approach to make a fee with funds you don’t but have. Take into account these (typically extra handy and dependable) options.
Make Funds On-line
Most corporations you often pay, equivalent to utility and telephone service suppliers, supply on-line fee choices. And plenty of of those corporations mean you can schedule your fee for a future date. You may “make” the fee now however assure the funds gained’t be pulled out of your account till you need them to be.
Schedule Automated Funds
Take on-line funds one step additional by scheduling automated withdrawals. Choose a date you’ll have the funds in your account and authorize the corporate to withdraw a specific quantity each month on that date.
You’ll not want to fret about making your funds on time — they’ll come straight out of your account every month with out you having to consider it. Simply make sure you’ll at all times have adequate funds to cowl these month-to-month funds, particularly if the quantity varies every month.
Use On-line Invoice Pay
Many banks and credit score unions supply a service known as on-line invoice pay. You schedule a fee — both one-time or recurring — on the establishment’s web site or app, and so they ship the fee to the recipient by the point it’s due. You can also make all of your common funds in a single place fairly than visiting a number of particular person corporations’ web sites.
So long as you’ll come up with the money for in your account by the date you’ve scheduled, you’re all set.
Postdated Verify FAQs
Since postdating a verify isn’t one thing most individuals do typically, there are some incessantly requested questions concerning the course of.
Is Postdating a Verify Authorized?
Sure. Nevertheless, make sure you’ll have sufficient funds in your account when the verify is cashed. If the verify bounces, you might incur overdraft or inadequate funds charges. Should you bounce too many checks, the financial institution would possibly shut your account.
Talking of the regulation, postdating a verify you gained’t have the funds to cowl constitutes verify fraud. That requires direct proof you meant to defraud somebody, which may be tough to show, however it’s not a danger value taking.
How Can I Cease Somebody From Cashing a Postdated Verify?
There isn’t a lot you are able to do to cease somebody from cashing a postdated verify earlier than the date written on it. You may ask the recipient to not money it early and hope they’ll honor your needs. Relying in your state, you would possibly be capable to instruct your financial institution to not money the verify early.
Should you’ve already despatched the verify, you may cease fee on it if it hasn’t already been cashed. You’ll seemingly incur a cease fee price, which may price anyplace from $15 to $35.
Can I Money a Postdated Verify Early?
Technically talking, sure. But when the verify bounces, you might face a returned merchandise price starting from round $25 to $40.
Plus, it’s type of a jerk transfer. You danger hurting your relationship with the sender. Be thoughtful and wait till the date written on a verify to money it.
Last Phrase
Verify writing is essentially changing into out of date. Almost each firm it’s worthwhile to pay has a web based fee possibility today, and lots of people have accounts with fee apps like PayPal and Zelle.
That stated, you continue to would possibly want to put in writing a verify infrequently. Perhaps your landlord is old-school and insists you pay your hire by verify. Perhaps you need to give a member of the family cash for his or her marriage ceremony, however you don’t love the thought of sticking money within the card. Perhaps you need to donate to a charity that doesn’t settle for on-line funds.
In these instances, postdating is sensible when you want some respiratory room between the time the verify leaves your arms and the time it’s cashed. Simply beware that there’s nonetheless an opportunity the recipient may money it beforehand, so lookup your financial institution’s insurance policies first.
