Available balances are impacted by pending transactions, which are payments or transfers that have been authorised but not yet processed. Pending transactions impact balances as follows:
Your available balance is the amount of money in your account to which you have immediate access. Your available balance will be different from your current balance if we have placed a hold on your deposit or if an authorized credit or debit card transaction has not yet cleared. When we place a hold on your deposit, you will receive a notice telling you when the funds will become available. Funds are applied to your current balance and begin accruing interest immediately, however, these funds are not part of your available balance and may not be used for transactions. The length of the hold depends upon the type of deposit you have made. Complete details are available in our Funds Availability Disclosure.
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The bank balance is the balance reported by the bank on a firm’s bank account at the end of the month. What is the Book Balance?The book balance is the in-house general ledger record of the same account. Comparing the Bank Balance and Book BalanceThere are multiple differences between the bank balance and book balance. First, there are likely to be checks outstanding that were recorded in the company’s book balance, but which have not yet been presented to the bank, and so are not recorded in the bank balance. Second, the company may have incorporated a deposit in transit into its book balance, but the bank has not yet processed it, so it does not appear in the bank balance. Third, the bank may have charged the company for a variety of fees, such as interest charges, account maintenance charges, and check processing charges, which are included in the bank balance but not the book balance. Finally, the company or the bank may have erroneously recorded a transaction, which results in an unresolved difference between the two balances. These differences are formally stated in the bank reconciliation. April 04, 2022/ |