A post-dated check is a check written by a payer that has a future date on it. This is to indicate that the check should not be cashed until that specified future date.
For example, if today’s date is July 29, 2023, and you write a check but date it for August 29, 2023, you have written a post-dated check. This can be done when the payer wants the payee to wait until a certain date to cash or deposit the check.
Post-dating a check is often used when a payer knows they will not have sufficient funds in their account until a certain date in the future. By post-dating the check, they can avoid bouncing a check due to insufficient funds.
However, it’s important to note that in some jurisdictions, banks may still process post-dated checks even before the date specified, especially in cases where checks are processed electronically. Therefore, it’s best to communicate directly with the payee about the intention of post-dating the check to prevent it from being cashed earlier.
Example of a Post-Dated Check
Let’s say Sam borrows $300 from his friend Bob on July 29, 2023. Sam doesn’t have the money to pay Bob back right away, but he knows he’ll have the funds after he gets his paycheck on August 15, 2023. To assure Bob that he will get his money back, Sam writes a check for $300, but instead of dating it July 29, 2023 (today’s date), he dates it August 15, 2023. This is a post-dated check.
Sam hands the check to Bob and says, “I’ve post-dated this check for August 15, when I know I’ll have the money in my account. Please don’t deposit it until then.”
In this way, Sam assures Bob of the payment on a specific date in the future when Sam is confident he’ll have sufficient funds in his account. Bob agrees to wait until August 15 to deposit the check.
This example shows how a post-dated check can be used as a promise for future payment. However, it’s important to remember that the acceptance and handling of post-dated checks can vary by country, state, or even between different banks. Always check with your bank about their policy on post-dated checks to ensure they will be handled as expected.