30

Is there a limit on the dollar amount of a personal check?

GS - Apologise to Monica
  • 29,974
  • 8
  • 93
  • 119

5 Answers5

30

Because of the way checks are processed, you can't write a check for $100 million or more:

https://web.archive.org/web/20150629144447/http://www.bankingquestions.com/checksyoureceived/q_limitfunds.html

The field used for 'amount' has 10 digits, so anything at/above 10^10 cents (which would require 11 digits) can't be processed, at least not by normal means.

Flux
  • 17,043
  • 8
  • 68
  • 124
  • 25
    So I guess I need to write two different checks for my island. – MrChrister Jan 26 '11 at 17:03
  • 2
    Physically huge checks, like from Ed McMahon or the lottery, are processed on special equipment that can handle trillion dollar-plus amounts: http://assets.nydailynews.com/img/2009/06/07/alg_cowboy_lotto.jpg – bstpierre Jan 28 '11 at 20:33
  • 9
    I think the key here however is "automated processing" However, there is no reason that a check has to be automatically processed. I can't imagine a situation in which a check for only $90 million isn't going to cause the depositing bank to directly call the issuing bank anyway. – Justin Ohms Jul 14 '11 at 18:50
  • 2
    It is possible to write a personal check for more than $100 million and have it accepted, for example Harold Hamm's $974 million and change divorce settlement check: https://money.cnn.com/2015/01/09/luxury/billionaire-divorce-check-cashed/index.html – jamesqf Sep 14 '20 at 17:09
7

Like the old American Express commercial: "no preset spending limit".

It is really up to the bank(s) in question how big a cheque they are willing to honour.

A larger amount would likely be held longer by a receiving institution to ensure that it cleared properly, but nothing written in law (in Canada, that I am aware of).

sdg
  • 6,474
  • 1
  • 21
  • 26
6

As long as someone is willing to take it, you can write it! I personally wrote a check for a new car. The dealership didn't bat an eye.

Theresa
  • 271
  • 3
  • 7
5

Not really. A bank will honor a million dollar check if there are funds there to let it clear.

JTP - Apologise to Monica
  • 172,273
  • 34
  • 296
  • 560
5

Many businesses will request that you get a bank-issued check for large amounts of money. The exception is often in cases where you're not going anywhere: you can write a 50,000 check for a deposit on a new house, and you'll never have a problem, but a car dealer will probably request a counter check for the same sum.

Satanicpuppy
  • 447
  • 2
  • 3
  • When I bought a house the escrow agent would not take a personal check and for the earnest money deposit. – Shannon Severance May 12 '17 at 18:20
  • I've bought cars with personal checks. But I think the dealer also ran my credit, so a) they knew I probably wasn't a scammer and b) they had a ss# to create a loan against if the check did bounce (I believe there was something in the paperwork that allowed such a loan to be created in such a circumstance). – stannius Jan 29 '19 at 21:03