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The supplier agrees to hold the checks and deposit them on the dates shown on the checks.

Jim assures the supplier that the checks will be paid by his bank on those dates.

Even if you write on the check that it is “void until” a certain date in the future, your instructions will not be honored by B of A without a postdating order. (The bonds are already free of state taxes for all purchasers.)When they were introduced several years ago, the bonds were immediately hailed as a great deal for upper-middle-class taxpayers because the income ceilings were, relatively speaking, quite high.

The bank notes that it also may not honor instructions that some businesses print on their checks, such as “not good after 60 days” or “not good for less than” a certain amount. Can you tell me more about the College Saver savings bonds and who is eligible for the tax breaks they carry? In fact, at their peak last year, full tax breaks on bond proceeds were available to couples filing jointly with annual adjusted gross incomes of up to ,250.

The bank simply withholds payment on the check until the date specified by the check writer.

(Under a stop-payment order, the check is essentially voided for all future payment.) Unless you purchase a postdating order, Bank of America says it is allowed under the state Uniform Commercial Code to honor all legally drawn checks presented to it for payment regardless of the indicated date. College Saver bonds are technically the same as any Series EE U. savings bonds, with two key exceptions: * The bonds must be registered in the names of the parents upon their purchase.* When the bonds are redeemed, the family’s adjusted gross income cannot exceed federal maximum limits in order for the bond proceeds to be free of federal tax.

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You think to yourself, as long as the check doesn’t clear until then, you will be fine, so you postdate the check for the fourth. Postdating a check to a later date is not illegal, but the check recipient is not legally bound to wait until the postdate to cash it.If you haven’t bounced a check lately, you should know that the non-sufficient funds (NSF) fees can hurt.Banks now typically charge between and for NSF.However, this year, the government quietly scaled back the limits by ,300 for individual filers and ,400 for couples filing joint returns. To reduce the number of upper-income families eligible to use them and increase tax revenues. You should ask for a trustee-to-trustee transfer of your funds from one account to another.For 1995, full tax breaks on bond proceeds are available to couples filing jointly with annual adjusted gross incomes in 1994 of up to ,851. For individual filers, total tax breaks are available for those with annual adjusted gross incomes in 1994 of up to ,201. In addition, bonds sold after May 1 no longer carry a guaranteed minimum interest rate. This is handled by representatives of the plans involved.

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