The current balance listed in your account includes any transactions that are pending but have not yet cleared. As such, the current balance might be listed as higher than the available balance — in other words, the current balance can be an amount that's greater than what you're able to withdraw from the account.
Depending on the type of transaction, it could take anywhere from a few seconds to several business days for a purchase or a deposit to be processed, also known as “settling” or “clearing.” But while the transaction is being processed, the debit or credit won't impact your current balance; it will only impact your ...
Should I pay my statement balance or current balance? Generally, you should prioritize paying off your statement balance. As long as you consistently pay off your statement balance in full by its due date each billing cycle, you'll avoid having to pay interest charges on your credit card bill.
Your available balance is the amount of money in your account, minus any credits or debts that have not fully posted to the account yet. This is the amount of money you can spend, but it may fully reflect the money you have at your disposal.
It is the difference between your credit limit (the total max amount you can charge on the card) and your current balance. As you make purchases using your card, the cost of each purchase is subtracted from your credit limit. The amount you're left with is known as your available credit.
Your present account balance (sometimes called the current balance) shows how much money is currently in your bank account—but it doesn't consider pending transactions, which can take up to three business days to clear. That means your present balance will probably run higher than your available balance.
So, what's the difference? Your statement balance typically shows what you owe on your credit card at the end of your last billing cycle. Your current balance, however, will typically reflect the total amount that you owe at any given moment.
Your current balance might be higher if you're looking at your account between the time that you receive a statement and when you pay it. That's because the current balance reflects both the statement balance before you pay the bill and any card activity that's occurred since then.
Overpaying does not raise your credit limit.
An overpayment will not help boost your credit limit, not even temporarily. Your credit limit remains the same — you'll just have a negative balance that will be applied toward your next statement.
The current balance on your bank account is the total amount of money in the account. But that doesn't mean it's all available to spend. Some of the funds included in your current balance may be from deposits you made or checks you wrote that haven't cleared yet, in which case they're not available for you to use.
Available balance is how much money you are able to spend right now, including any pending transactions. Meanwhile, the current balance shows how much money is in your account without subtracting pending payments or withdrawals. Current balance can be useful in some situations, like when doing your monthly budgeting.
The available balance for your account may differ from the current balance because of pending transactions that have been presented against the account, but have not yet been processed. Once processed, the transactions are reflected in the current balance and show in the account history.
If an account goes a week or two without any activity, its available balance and current balance will likely be in sync. However, once purchases and payments are made with a debit card, that is when the available balance is likely to fluctuate.
Can I spend the money that's being held for a pending transaction? No, the funds are temporarily unavailable until the transaction clears. Spending them could result in overdrafts or declined transactions.
Your total and available balances may vary if your account has pending check deposits, debit card purchases and ATM transactions that haven't cleared the account yet.
Put simply, your current balance in a checking account is your total amount, why may include pending transactions, while your available balance specifies the actual amount you can withdraw at that point in time. In other words, your bank will allow withdrawals up to your available balance.
To calculate your amount due, we take your total balance, subtract the current balance of any Installment Plans you have and add the monthly installment payments due. If you don't have any active Installment Plans, your total balance and amount due are the same, unless you have a credit balance.
Your current balance is the total of all the posted transactions as of the previous business day. Your available credit is figured by subtracting your current balance (or amount already used) from your credit limit and adding any outstanding charges that have not posted yet.
Why is my available credit less than my credit limit? You can think of available credit as your credit limit minus your current balance. If you have outstanding charges on your credit card, they will reduce your available credit.
Receiving an unexpected cheque or deposit into your bank account can happen for all sorts of reasons, from a banking error to an overpayment from your employer, but while it may sound like a dream come true, the reality can be quite different.
Components of the Current Account Balance
If money is being paid for a service, it is recorded as an import (a debit). If money is received, it is recorded as an export (credit).
In a checking account, the available balance is the amount of money that the account holder can withdraw immediately. The current balance, by contrast, includes any pending transactions that have not yet been cleared. The bank will honor any withdrawal or payment you make up to the available balance amount.
Usually, you'll have access to your direct deposit at the opening of business on your payday — by 9 a.m. In many cases, direct deposits hit accounts even earlier, often between midnight and 6 a.m. on payday morning.
In those cases, you can only spend your available balance (or less if you have outstanding checks), and the rest of the money is being held by your financial institution. Current balances include all of your money, including all available funds PLUS funds that are being held.