Postdated

DEFINITION of 'Postdated'

Any check or draft that has a future date written upon it by the user. The amount of the check will not be drawn from the account until the date written on the check. For example, a check written on the 14th of the month but dated for the 28th will not be cashed for another two weeks.

BREAKING DOWN 'Postdated'

The rules for postdated checks are outlined in Article 3, Section 113 of the Uniform Commercial Code. These checks are frequently used by customers who take out payday loans. Most banks will honor a postdated check even though it is paid before the date on the check.

RELATED TERMS
  1. Check

    A written, dated and signed instrument that contains an unconditional ...
  2. Negative Float

    The period of time between when a bank customer writes a check ...
  3. Rubber Check

    Another name for a "bounced check." A rubber check is a slang ...
  4. Bad Check

    A check drawn on a nonexistent account or on an account with ...
  5. Crossed Check

    Any check that is crossed with two parallel lines, either across ...
  6. Bounced Check

    A slang word for a check that cannot be processed because the ...
Related Articles
  1. Personal Finance

    Top 5 Reasons Banks Won't Cash Your Check

    Learn the top reasons that a bank won't cash your check, and find out what steps you can take to prevent those scenarios from happening.
  2. Personal Finance

    Explaining Checking Accounts

    A checking account is an account at a financial institution, usually a bank, that allows for deposits and withdrawals.
  3. Personal Finance

    What is a Cashier’s Check?

    A cashier’s check is a check written on a financial institution’s funds.
  4. Personal Finance

    What is a Bounced Check?

    Bounced check is a slang term to describe a check that cannot be processed because its writer has insufficient funds.
  5. Markets

    What's a Bank Draft?

    A bank draft is a type of check. The bank guarantees payment, making it a more attractive option for the check recipient.
  6. Markets

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  7. Personal Finance

    2015's Top Checking Account Promotions

    Open a checking account in 2015 and the bank could give you a cash bonus. Check out these top offers.
  8. Personal Finance

    Top Premium Checking Accounts of 2015

    Which banks offer the best deals for premium checking accounts – and what do you have to do to qualify for one?
  9. Retirement

    How To Do a Background Check on Prospective Employees

    Discover why background checks can be extremely costly, tips for small businesses conducting checks on a budget and if professional checks can be avoided.
  10. Markets

    What is a Record Date?

    The date established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution.
RELATED FAQS
  1. What is the Activities of Daily Living (ADL) hierarchy scale?

    Find out how a banker's acceptance is different than a post-dated check, even though both instruments represent a claim against ... Read Answer >>
  2. How do you calculate payback period using Excel?

    Understand the various fees that can be assessed on a personal or business checking account, and learn methods to avoid being ... Read Answer >>
  3. What is the difference between record date and payable date?

    Learn how to ensure receiving stock dividends by the payment date on record and important dates to keep track of pertaining ... Read Answer >>
  4. Is my credit score usually checked before receiving a payday loan?

    Learn more about how payday lenders operate and whether or not they check your credit score during your loan application ... Read Answer >>
  5. Do I own a stock as of the trade date or the settlement date?

    When it comes to buying shares, there are two key dates involved in the transaction. The first date is the trade date, which ... Read Answer >>
  6. What is the difference between record date and ex-dividend date?

    Understand the difference between important stock purchase and reporting dates to ensure correct receipt of investment dividend ... Read Answer >>
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center