What happens when a check is designated as postdated?

When a check is designated as postdated, it is identified to be valid for a specified future date. This means that the issuer intends for the check to be cashed or deposited only on or after that future date. Banks are typically required to honor the date written on the check, so if someone tries to deposit or cash the postdated check before that specified date, the bank may not process it.

Postdating is a way for the person issuing the check to manage their funds, ensuring that the check will only be cashed when there are sufficient funds in their account. It’s important to note that while a postdated check is valid for the specified future date, it does not mean that it has no effect prior to that date; however, it is commonly expected that banks will adhere to the postdating instruction by holding the check until the date specified.