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Let's say that you have a checking account with a debit card. Your balance is the amount of money in the account. However, the available balance may be lower. When you deposit a check, the bank can place a hold on those funds until the deposited check clears. The amount of the check is added to your balanceimmediately, but is not added to your available balanceuntil the hold clears. Also, when you use your debit card, the merchant may place a hold on some amount of money when they initially authorize the charge. (For example, if you pay for gas at the pump, the gas station may pre-authorize a set amount such as $75.00, even if you end up only buying $30 worth of gas. Also, restaurants will typically pre-authorize an amount somewhat higher than your bill, to allow you to add a tip to the amount charged to your card.) Those merchant holds from your debit card will also temporarily reduce your available balance, until the hold expires or is cleared.
The average available balance is simply the average of the daily available balances for a month, or whatever period is covered by your statement.
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Difference between ledger balance and available balance?
The available balance refers to the cash that can be withdrawn from the given account. The ledger balance on the other hand refers to the amount that is available in the account.
What is the difference between Actual balance and Available balance?
Actual balance is the real balance while avialable balance is the physical balance
How can your checking account have a current balance that is lower than the available balance?
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Difference between ledger balance and available balance?
The available balance refers to the cash that can be withdrawn from the given account. The ledger balance on the other hand refers to the amount that is available in the account.
What is the difference between Actual balance and Available balance?
Actual balance is the real balance while avialable balance is the physical balance
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Calculate the average daily balance and finance charge?
Calculate the average balance and finance charge
Interest is charged on the average daily balance on your charge card with the?
Average daily balance method
How can your checking account have a current balance that is lower than the available balance?
Current balance may be reflecting beginning of day balance while other credits posted during the day giving you a higher immediate available balance
What is the price range for the New Balance 608?
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What does it mean to transfer credit card balance?
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What is the difference between a current balance and an available balance on a checking account?
I am not a banking expert, but my understanding is that - say you have 100$ in your account and you pay in a cheque for another 100$, then your current balance will be 200$ but your available balance will be 100$ until the cheque clears (when the available balance will match the current balance). This protects the bank from someone paying in a cheque that may 'bounce' and withdrawing money that never gets put into the account.
