This week I discovered a discrepancy between the available balance and the posted balance on my bank statement. After doing some research, I realized that the available balance is what is actually in your account, while the posted balance is what your bank has recorded as being in your account. This difference can be important to understand when tracking your finances. For example, if you’re expecting a large deposit but it doesn’t show up in the available balance, you’ll know to check the posted balance to see if it has been recorded yet. Understanding these concepts can help keep you more organized and aware of your money flow.
What is the Available Balance?
The Available Balance on a credit card is the total amount of credit that is available to the cardholder minus any outstanding charges or balance transfers. In other words, it is the credit limit minus the balance.
The Available Balance is important because it determines how much Available Credit the cardholder has to use. Available Credit is the amount of Available Balance that can be used without incurring any fees or interest charges.
It is important to remember that Available Credit and Available Balance are two different things. Available Credit is the amount that can be used without incurring fees, while Available Balance is the total amount of credit available to the cardholder.
What is Posted Balance?
Posted balance is the amount of money in your account after all transactions have been posted. This includes any deposits, withdrawals, checks, or electronic transfers.
Posted balance is different from the available balance, which is the amount of money that is immediately available for withdrawal. Posted balance may also be different from the current balance, which includes any pending transactions that have not yet been posted to the account.
To get an accurate picture of your account balance, it’s important to check all three balances. That way, you’ll know exactly how much money you have to work with at any given moment.
Difference between Available Balance and Posted Balance
Available balance and posted balance is a common sources of confusion for account holders.
- Available balance is the amount of money in an account that is readily available to be spent, while posted balance includes all transactions, including pending items such as checks that have not yet cleared.
- In general, the available balance will be lower than the posted balance.
- However, it’s important to keep in mind that the available balance can fluctuate throughout the day as transactions are processed.
As a result, it’s always best to check with your bank to get the most up-to-date information about your account balances. By understanding the difference between available balance and posted balance, you can better manage your finances and avoid overdraft fees.
Conclusion
The difference between the available balance and the posted balance is important to understand. The available balance is what you have to work with, while the posted balance is what has been recorded. It’s crucial to be aware of both when managing your finances.
