Unless a cheque is certified, it is considered stale-dated six months after it is written.
Stale-dated cheques are not necessarily invalid, however, it is up to the discretion of financial institutions whether or not to honour them – they have no obligation to do so.
That means you may not be able to cash that birthday cheque you lost in your everything drawer. If you have a stale-dated cheque on your hands, here’s what to do to make sure that money ends up safely in your bank account.
What is a stale-dated cheque in Canada?
A stale-dated cheque is a cheque that has not been cashed or deposited within six months from its issue date.
Identifying a stale-dated cheque is simple – if it’s not a certified or a government cheque, look at the date written on it. If that date is more than six months ago, the cheque is considered stale-dated.
Why do cheques become stale dated? The 6-month time limit encourages the person who receives it to complete their transaction within a reasonable period. It helps keep financial records current and ensures that money is transferred promptly.
Here’s an overview of cheques that do and don’t become stale dated after the six-month mark:
Cheques that become stale dated after six months
- Personal cheques: A personal cheque is a written instruction from an individual to their bank to pay a specified amount to a person or organization.
- Business cheques: A business cheque is a written instruction from a business to its bank to pay a specified amount of money to a person or organization.
Cheques that don’t become stale dated after six months
- Certified cheques: A certified cheque is a personal or business cheque that the bank guarantees for payment, verifying the account has sufficient funds to cover the amount being paid.
- A government cheque: A government cheque is a payment issued by a governmental body to individuals or entities for purposes like tax refunds, benefits, or other government-sponsored programs.
What to do if a cheque is stale dated
That birthday cheque from your aunt has been sitting (forgotten) at the bottom of your drawer. You find it and it’s stale dated. Here’s what you can do:
- Contact the issuer: Reach out to the person or company that issued the cheque and request a new one (I’m sure your aunt will understand – life gets busy).
- Visit your bank: Your bank might still accept the stale-dated cheque, so it's always worth a try.
- Verify bank policies: Different banks have different policies for stale-dated cheques; check with yours for specific advice.
For more detailed steps and information, consult with your bank or financial advisor.
Have you ever tried to cash a stale-dated cheque?
Handling a stale-dated cheque can be a hurdle, but with the right steps, you can navigate this financial hiccup smoothly.
We hope our guide has shed some light on what stale-dated cheques are and how to deal with them.
Have you ever encountered a stale-dated cheque? How did you resolve it? Do you have any tips or experiences to share with others facing similar issues?
We'd love to hear your thoughts and stories in the comments below!
FAQ
What happens if you deposit a stale-dated cheque?
If you deposit a stale-dated cheque, the bank may still process it if the issuer's account has sufficient funds, but they are not obligated to do so. This could result in delays, or the cheque might be returned unpaid, potentially incurring fees.
Do government cheques go stale dated?
Government cheques don't have the same six-month limitation as personal or business cheques, meaning they do not become stale-dated in the same way. This makes them more flexible in terms of deposit or cashing time.
Can certified cheques be stale dated?
Certified cheques do not become stale-dated because the bank guarantees their payment by setting aside the cheque amount upon certification. This assurance reduces the risk of the cheque being rejected due to insufficient funds or becoming stale-dated.
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