A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Available BalanceThe money in your account you can actually spend right now, after subtracting holds and pending transactions from the total balance.
- Pending TransactionA payment or deposit that has been authorized but not yet fully processed, temporarily affecting your available balance.
- Deposit Hold PeriodThe time a bank keeps part of a deposited check unavailable while it confirms the funds will clear from the paying account.
- Checking AccountA bank account built for everyday spending, letting you deposit money and pay for things with a debit card, checks, or transfers.
- Savings AccountA bank account meant for storing money you don't need right away, usually paying a small amount of interest on the balance.
- OverdraftWhat happens when you spend more than your account holds, leaving a negative balance that the bank may cover for a fee.
More in Banking
Account NumberAccount ReconciliationACH TransferAPR (Annual Percentage Rate)APY (Annual Percentage Yield)ATM (Automated Teller Machine)
Plain-English education — not personalized legal, tax, or investment advice.