Why Postdating Cheques in Singapore Is Becoming a Waste of Time
Updated: 29 Jul 2025
Written bySingSaver Team
Team
In Singapore’s fast-moving digital payment landscape, postdating cheques feels like holding onto a relic from the past. While legally valid, this old-school practice no longer offers much protection or convenience. With banks increasingly leaning on automated systems, postdated cheques may be processed early unless properly flagged — potentially leading to bounced payments and penalties. As Singapore heads towards a cheque-free future with PayNow, GIRO, and new digital payment solutions, clinging to postdating may no longer make sense.
Is it illegal to postdate cheques?
No, postdating cheques is not illegal in Singapore. Under Section 13(2) of the Bills of Exchange Act 1949, a cheque does not become invalid simply because it carries a future date.
People usually postdate cheques when they want to delay payment — for example, waiting until they have enough funds in their account. This was once a common practice in rental payments or supplier arrangements.
However, while issuing a postdated cheque is allowed, doing so fraudulently is a different story. Writing a cheque with no intention of ensuring funds are available when it is cashed could be considered fraud, which is a criminal offence.
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What are the local bank rules on postdated cheques?
While postdating is legally recognised, banks in Singapore are not obliged to honour the date unless they notice it.
Generally, banks are expected to process cheques only on or after the date indicated. However, cheque clearing today is mostly automated. If a cheque is deposited early and the system fails to catch the future date, it may still be processed.
In such cases, it becomes the drawer’s responsibility to raise a dispute with the bank. This process can be inconvenient and does not guarantee reversal. Relying on banks to notice postdated cheques is increasingly risky in a system that prioritises efficiency and automation.
» To write one correctly, you need to understand the parts of a cheque
What’s the worst that can happen if I postdate a cheque and it gets cashed early?
If your postdated cheque is processed early and you do not have sufficient funds, serious consequences can follow.
The cheque may bounce, leading to dishonour fees — typically around $40 or more per cheque. You may also face additional charges if your account becomes overdrawn.
For business owners, bounced cheques can affect credit records and harm relationships with vendors. In severe cases, legal action may even be taken. Even for individuals, having a cheque bounce damages trustworthiness and can make it harder to secure credit or future financial arrangements.
H3 Best banks for overdraft protection
If you frequently issue cheques and are concerned about insufficient funds, consider banks that offer overdraft protection. Below is a comparison of some banks in Singapore with more forgiving overdraft policies:
|
Bank |
Overdraft Protection Available |
Overdraft Fee (if applicable) |
|
Yes, with credit facility |
$5 per day (up to $200 monthly) |
|
|
Yes, with EasiCredit or secured facility |
From $5 daily |
|
|
Yes, with CashPlus or secured facility |
From $5 daily |
|
|
Yes, with overdraft facility |
From $5 daily |
|
|
Yes, with overdraft facility |
From $5 daily |
How do you delay or stop a cheque payment?
If you issue a postdated cheque but later change your mind or realise a problem, you can request to stop payment.
This is typically done through your bank’s mobile app, phone banking, or by visiting a branch. Stop payment fees usually range from $20 to $30. However, timing is crucial. If the cheque has already been processed, the stop instruction may not be successful.
Therefore, if you need to halt a cheque payment, act immediately. Relying on postdating alone does not guarantee the payment will not be processed early.
» To work out how much time you have, it’s useful to know how long does a cheque take to clear
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About the author
SingSaver Team
At SingSaver, we make personal finance accessible with easy to understand personal finance reads, tools and money hacks that simplify all of life’s financial decisions for you.