Why is my available balance less

Skip to content. Midwest Community Main Contact Form. Phone Email. For the best ways to contact us about specific issues, please select a topic from the dropdown menu. Yes No. Available Balance vs. Avoiding Cash Crunches For the most part, you depend on your bank to release funds.

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This extra available amount which is your overdraft limit means that you are borrowing money from the bank. Anytime you borrow money, you must pay interest on what you borrow. This also applies to overdraft protection, as well as when you overdraw your bank account unintentionally. Overdraft can be an expensive way to borrow a little bit extra. The annual interest rate is often set around 21 percent.

Each bank and credit union have their own fees and charges, but generally speaking, overdrawing your bank account costs more than charging the same amount on a credit card.

If you have overdraft protection on your account, your available balance will be higher than your bank account balance. A better money management strategy is to work towards saving some money in a separate bank account. Create a realistic personal or household budget so that you can manage all of your routine and irregular expenses, as well as set money aside in savings to use for unexpected expenses or emergencies. Budgeting Guidelines Budget Calculator.

It does not include any pending transactions that have yet to clear. When you log into your online banking portal, you will normally see two balances at the top: The available balance and the current balance. The current balance is what you have in your account all the time. This figure includes any transactions that have not cleared such as checks. This process may take much longer if the check is drawn on a non-bank or foreign institution.

The time between when a check is deposited and when it is available is often called the float time. A customer's available balance becomes important when there is a delay in crediting funds to an account. Customers can use the available balance in any way they choose, as long as they don't exceed the limit. They should also take into consideration any pending transactions that haven't been added or deducted from the balance.

A customer may be able to withdraw funds, write checks, do a transfer, or even make a purchase with their debit card up to the available balance. If you go beyond that, you may go into overdraft , and there may be issues with the pending transactions. Banks may decide to place holds on checks under the following circumstances, which affect your available balance:.

On July 1, , new amendments to Regulation CC—Availability of Funds and Collection of Checks— issued by the Federal Reserve took effect to address the new environment of electronic check collection and processing systems, including rules about remote deposit capture and warranties for electronic checks and electronic returned checks.

There are cases that can affect your account balance—both negatively and positively—and how you can use it. Electronic banking makes our lives easier, allowing us to schedule payments and allow for direct deposits at regular intervals. Remember to keep track of all your pre-authorized payments—especially if you have multiple payments coming out at different times every month.

And if your employer offers direct deposit , take advantage of it. Not only does it save you a trip to the bank every payday, but it also means you can use your pay right away. Checking Accounts. Money Market Account. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.