What is the actual balance in my checking account

What does current balance mean in my account?

When you look at your bank account online or speak with a branch teller, the current balance is the total amount of money kept in the account. As you will learn soon, this may not be the most accurate picture of your account's status.

What does available balance mean?

Your available balance is the amount of money in your account, minus any credits or debts that have not fully posted to the account yet. This is the amount of money you can spend, but it may fully reflect the money you have at your disposal.

Why are my current balance and available balance different?

You may notice upon checking your account balance that these two numbers are not the same. If you've made recent purchases with your debit card, but the financial institution hasn't fully processed the transaction, the current balance will be higher than the available balance. This is also the case if you have written a check that has not yet cleared.

Can I spend my current balance?

You can, but you have to be mindful about other financial transactions you have made. Your current balance reflects all your money, in addition to funds that are being held or are in transit, such as checks.

To use an example, let's say you both your current and available balance are at $100. You use $10 to buy coffee in the morning. Your current balance would still say $100 since the transaction at the coffee shop is still pending. But your available balance would be $90. So, if you also had a check that you mailed that was for $100 and it cleared, you would be overdrawn by $10. More than $11 billion in overdraft fees were paid in 2019 – you don't want to add to that number if you can help it.

You should keep an eye on your available balance if you have recurring payments or a large purchase to make, as that is the balance most affected by new transactions.

Do pending transactions show in the current balance?

No, your pending purchases do not appear in the current balance. That total is the sum of all cleared and posted transactions. So any purchases you've made in the last day or two (or longer depending on the day of the week and the timeframe in which your financial institution processes its transactions) will not show in the current balance. Your available balance is the more accurate snapshot of how much money you have in the account since it does reflect pending transactions.

Why is my available balance more than my current balance?

There are a couple of explanations for this occurrence. One is that you may have recently deposited a check, either via an ATM or mobile deposit. Some financial institutions will add the deposit to your available balance but will not add it to the current balance until they verify the check is good and receives funds from the issuing bank.

The other reason could be that you have an overdraft protection line of credit from your financial institution. Some banks and credit unions offer this service to give customers a little wiggle room if there is an accidental overdraft, but remember, this is a loan and will need to be repaid if used.

You might find that you have several balances, including an "available" balance, when you check the status of your bank account, and the amounts of these balances can differ. Your available funds can sometimes be less than your actual account balance.

Your Available Funds

Your available balance is the amount you can spend right now. You can think of it as "funds available to withdraw." You can use the money in several ways.

• You can take that amount out of your account in cash, either at an ATM or with a bank teller. You can even withdraw cash at other credit unions nationwide if you use a credit union that participates in Shared Branching.

Note

Shared Branching is a network formed by more than 5,000 participating credit unions allowing members to transact banking business at any of them.

• You can spend with your debit card. Your card pulls from your checking account, so you can only use it if you have available funds there. Swipe or insert your card at a card reader, or make purchases online.
• Checks are also funded from your checking account. You should assume that the funds are no longer available as soon as you write a check, even if your bank says you still have that money. It can take several business days—or longer, if your payee waits to deposit the check—for the transaction to appear in your account. Meanwhile, that money isn't really "available." This is something you should keep of. It's easiest if you use a check register or balance your account regularly.
• Available funds can be used for online bill payment, whether you create the payment from your bank or your biller asks your bank for the money. Be sure to keep enough money on hand so your balance is sufficient if your billers pull from your account automatically.

Not-Yet-Available Funds

Sometimes you’ll see an available balance that’s less than your account balance. You can only spend your available balance in this case, or less if you have outstanding checks. The rest of the money is being held by your bank.

This generally happens for two reasons, resulting in a low available balance:

• You've made deposits that haven't cleared and been credited to your account yet.
• There are pending withdrawals or authorizations against your account.

Deposits Not Credited

Your bank might not allow you to use the money immediately when you deposit checks into your account. They don’t know whether the payment is legitimate, and the money takes several days to transfer from the payee's bank to yours.

You can generally use up to $200 by the next business day, and some banks let you use your money more quickly, especially if you’re a longtime account holder with no history of depositing bad checks. Government-issued checks such as tax refunds might also be available more quickly, but others, such as personal checks and checks from overseas, are riskier, and banks take longer to release those funds.

Note

Banks will even hold cashier's checks for a few extra days in some cases.

This can be inconvenient, but these holds can protect you. You're responsible for any funds that have been spent if that check you deposited ultimately bounces. You'll have to replace the money in your bank account and pay fees to your bank if you spend the money from a bad check

You might also end up bouncing checks of your own and racking up fees if the check you deposited isn't honored and doesn't clear. Not granting you access to this money right away allows your bank a chance to make sure the check is good.

Note

Wait a while before you spend the money if you have any doubt about a check, even if your bank doesn't put a hold on it.

Pending Withdrawals and Authorizations

Funds can be unavailable to you because the bank knows that the money is already spoken for if you've scheduled an upcoming payment through its online bill pay feature. The same is true when you swipe your debit card. That money is typically deducted from your balance immediately.

Debit cards can be especially troublesome, because merchants sometimes charge more than you're actually going to spend. This happens most often at gas stations, rental car agencies, and hotels. Some places simply authorize $100 or more every time you swipe your card, and that money can be tied up for several business days until the hold is released.

Note

It's helpful to know how much is potentially available after all of those holds go away, even if you can't spend that money immediately.

Other Balances

You might find an "account balance" or "running balance" noted on your account in addition to your available balance. These balances include all of your money—all available funds as well as funds that are being held.

You can always balance your account yourself if you want to double-check your bank's math. It's a good way to track your spending and catch any identity theft issues before they get out of hand, in addition to helping you catch mistakes.

Note

You’re often protected from errors and identity theft, but you have to act quickly to get the full protection available under federal law.

How to Avoid Cash Crunches

Receiving your paychecks by direct deposit gets money into your account quickly. Sign up for electronic payments, if possible, so the money goes directly from your employer’s bank account to yours. You won't have to wait on the check, especially if it goes through the mail, and you don’t have to go out of your way to deposit it.

Note

The money might even hit your account a day or two before the checks are printed, and some banks offer same-day availability for these payments.

Keeping a cushion in your account can protect you from unexpected expenses and delays. A small cash buffer can help avoid problems if a payment doesn't clear when you think it will or at all, or if your bank puts a larger-than-expected hold on your funds.

Look into overdraft protection if you can't manage a buffer, but only sign up if you’re going to use it as a safety net—don’t make a habit out of paying the associated fees. Use a less-expensive overdraft line of credit if possible.

Frequently Asked Questions (FAQs)

How do I check my bank account balance online?

Many banks offer mobile apps that allow you to quickly check your balance from your phone. App layouts differ. If the account balances don't display immediately when you open the app, look for an "accounts" tab that could provide more detail. If you don't want to use an app, you can visit your bank's website and find the "accounts" tab there.

What happens if I close my account with a negative balance?

A bank probably won't let you close your account if you owe it money. You can request an account closure, but the bank may deny the request until you settle your debt.

What is actual balance vs available balance?

What is your current balance in the checking account?

Why is my actual balance less than my available balance?

How can I withdraw my actual balance?