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
- OverdraftWhat happens when you spend more than your account holds, leaving a negative balance that the bank may cover for a fee.
- Overdraft ProtectionA bank service that covers transactions when your balance runs short, usually by pulling from a linked account or a small line of credit.
- Checking AccountA bank account built for everyday spending, letting you deposit money and pay for things with a debit card, checks, or transfers.
- Available BalanceThe money in your account you can actually spend right now, after subtracting holds and pending transactions from the total balance.
- Monthly Maintenance FeeA recurring charge some banks apply to keep an account open, often waived if you meet a balance or direct deposit requirement.
- Returned Item FeeA fee charged when a check or automatic payment bounces because there wasn't enough money in the account to cover it.
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.