The available balance is the amount of money that can be spent or withdrawn from a checking or savings account at a given time. Deposits may be immediately available, but checks may take several days to clear. It’s important to monitor the available balance to avoid overdrafting.
The available balance is the amount of money currently present in a checking or savings account. In other words, it refers to the amount of money that an account holder could spend or withdraw from the given account at a given time. Each bank or checking account may have different methods for calculating an available balance.
When money is deposited into a checking or savings account, it is sometimes immediately available. If this is the case, when a new account is opened and $100 United States Dollars (USD) is deposited into it, the available balance in the given account will be $100 USD. If another $100 is deposited the next day, the available balance would be $200 USD, and so on. In general, when cash is deposited into a bank account, it is immediately added to the amount of money available in the account, and therefore the available balance changes immediately.
However, the money deposited is not always immediately available. For example, a check that is deposited may not be available until the bank’s funds are issued from the check. Sometimes it can take several business days before the transaction is complete and the money is considered to be on deposit and available to the account holder. As such, the amount of money deposited into the account may be greater than the available balance.
Often, money is debited or withdrawn from checking and savings accounts as well. This affects your available balance because when you spend some money, it reduces the remaining amount available to spend. Just like deposits, sometimes withdrawals or debits can show up right away, and sometimes they’re pending for several days before they show up. For example, an ATM withdrawal from a checking account may immediately reduce the available balance, while a purchase at a gas station may not reduce the available balance for a few days, until it is determined exactly how much was charged at the gas station. service and until Money is withdrawn from the bank account.
It is important to note the available balance in a given account so that an account overdraft does not occur. Overdrafting occurs when more money is taken from the account than is available within the account. In order to avoid excessive wording, it’s a good idea to check your available balance before making a purchase or writing a check. Most banks will allow the balance to be checked online or by making a phone call to the bank; many banks will also send out alerts informing customers of the available balance in a given account.
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