What Happens if You Don’t Cash a Certified Check?
Written by
Elizabeth Constantineau, AI Editor
Edited by
Elizabeth Constantineau, CFHC™
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Certified checks are often used for large transactions because they are more secure than personal checks. The bank holds the money for a certified check, which means the person getting the check can be sure it won’t bounce. But what happens if you don’t cash a certified check? Keep reading to find out.
Understanding Certified Checks
A certified check is a type of check for which the issuing bank guarantees payment. The bank certifies that the signer has enough money in their account to cover the check, and then sets aside this amount until the check is cashed.
What Happens If You Don’t Cash a Certified Check?
If you don’t cash a certified check, the funds remain with the bank, and the check does not expire like a regular personal check. However, after a certain period, typically around 90 days to a year depending on the bank’s policy, the check may be deemed “stale” but the funds do not disappear. The issuing bank holds the funds, and you can usually still cash the check after this period, though you might need to take additional steps like obtaining a new check from the bank.
Key Takeaways
- Funds remain with the bank: The funds for a certified check are reserved in the payer’s account. If you don’t cash the check, the money remains in the bank.
- Check becomes stale: After a certain period, typically ranging from 90 days to a year, the check may be considered stale. However, this does not mean the check is void.
- Reissuing the check: If a certified check becomes stale, you can usually request the bank to reissue a new check, although this process may involve certain fees or paperwork.
Legal Implications To Know
If a certified check goes uncashed for a long period, there are important legal considerations to be aware of.
Unclaimed Property Laws
If a certified check remains uncashed for an extended period, usually several years, the funds may be turned over to the state’s unclaimed property division due to escheatment laws.
Claiming Funds
If the funds have been turned over to the state, you will need to go through the state’s unclaimed property process to claim the money.
Final Take
Not cashing a certified check does not lead to an immediate forfeiture of the funds. The money remains secure with the issuing bank, and you typically have options to cash the check even after it becomes stale. However, it’s essential to be aware of the bank’s policies and any potential legal implications if the check remains uncashed for a very long period.
FAQ
Here are the answers to some of the most frequently asked questions regarding certified checks.- What happens if a certified check is never cashed?
- If a certified check is never cashed, the funds remain in the bank. However, if the check remains uncashed for an extended period, usually several years, it may be subject to escheatment laws. This means the funds are turned over to the state's unclaimed property division. The original payee can claim the funds from the state.
- How long can you keep a certified check without cashing it?
- A certified check can be kept without cashing it typically for about 90 days to a year before it becomes stale. However, the exact time frame depends on the issuing bank's policies. Even after a check becomes stale, the funds are usually still available, but additional steps might be required to access them.
- Can you cancel a certified check?
- Canceling a certified check is generally not straightforward because these checks are guaranteed by the issuing bank. However, if the check is lost, stolen or there are other extenuating circumstances, the bank may issue a "stop payment" on the check. This process can be complex and may involve fees and legal documentation.
- What happens to checks that are never cashed?
- For regular checks that are never cashed, they typically become void after 6 months to a year, depending on the bank's policy. If these checks remain uncashed for several years, the funds may eventually be handed over to the state's unclaimed property office under escheatment laws. The owner of the check or the intended payee can then claim these funds from the state.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
