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. Savings

    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. Savings

    Banking: Check-Writing 101

    By Amy FontinelleThe ability to write checks from your checking account allows you to pay bills or send money to relatives more securely than using cash and less expensively than using a cashier's ...
  3. Savings

    Explaining Checking Accounts

    A checking account is an account at a financial institution, usually a bank, that allows for deposits and withdrawals.
  4. Savings

    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. Personal Finance

    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. Savings

    Banking: Managing Your Checking Account

    By Amy FontinelleBecause your checking account is the nexus of all your banking activity - the main place that your money flows in and out of - you'll need to do a few things to keep an eye on ...
  7. Professionals

    Market Terms

    FINRA Series 6 Exam Study Guide - Market Terms. This section explains different market ters and dates such as trade and settlement dates, regular-way settlement and dividend distribution date.
  8. Budgeting

    Checking Accounts

    Spot and avoid the money wasters that are slowly eating away at your wallet and bank account.
  9. Options & Futures

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  10. Investing Basics

    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. 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 >>
  5. 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 >>
  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. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center