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.
- NSF Fee (Non-Sufficient Funds Fee)A charge the bank applies when it rejects a payment because your account lacks the money to cover it, unlike an overdraft that is paid.
- 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.
- Available BalanceThe money in your account you can actually spend right now, after subtracting holds and pending transactions from the total balance.
- Debit CardA card tied to your checking account that pulls money directly from your balance when you pay for something or withdraw cash.
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.