Sunday, December 4, 2011

What's the difference between "available balance" and "running balance"?

I checked my online statement today and found that my running balance was at $233.53 and my available balance was $174.95. Why is it higher, and what's the difference between the two?





Thanks in advance|||The running balance is the official balance, based on the deposits, withdrawals and purchases the bank knows about.





The available balance is what the bank is willing to let you use. Freshly deposited checks that haven't cleared and 'holds' placed by businesses (for example, paying in advance at the gas pump will reserve more money than you actually spend) affect the available balance.|||You might be operating a sweep account with your bank in which whenever your bank balance exceeds a predetermined sum, the bank automatically transfers the excess in a flexible fixed deposit account thus entitling you with a higher rate of interest on the excess deposit with the bank. the running balance thus shows the total of your available balance in savings account+balance in Sweep account or flexi deposit account.|||The higher amount was the amount you had yesterday, or at midnight. Then a few debits came in and the $174.95 is what you have left to spend, after these debits clear tonight.

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