Checking your bank account could show you a few different numbers, including your available balance and your current balance. Your current balance and your available balance don’t always match. Knowing the difference between these two is important for how you manage your money.
Current balance vs. available balance explained
Your current balance reflects the amount of money in your bank account at any given moment. Your available balance is the amount of money you have to spend, including any pending payments and deposits.
The key difference is that your pending purchases do not appear in the current balance. That’s why these two balances can be out of sync.
If you clean out your bank account based on your current balance, you can overdraw your account and face fees. Use your available balance number to know what you can spend and avoid overdraft penalties.
Why is my available balance different from my current balance?
Your available balance differs because it includes pending transactions and your current balance doesn’t. A pending transaction has been authorized but hasn’t been posted to your account, and a posted transaction has been fully processed.
If your bank hasn’t fully processed a debit card purchase, you may see that your current balance will be higher than your available balance. This can also happen if you’ve deposited a check that hasn’t yet cleared. It’ll take a couple of days for that check to clear, and once it does, that money will be part of your available balance.
Your available balance is a better figure than your current balance to judge how much money is in your account. But monitor your available balance for large or recurring payments because that balance is most affected by new transactions.
Don’t be too worried if your balances aren’t the same. Because transactions — both incoming and outgoing — happen regularly, these balances are bound to change as well.
Going off your available balance — and thinking about whether you’ve got outstanding checks and payments before you spend — can help you avoid overdrafting your account and facing fees. This could leave you in the negative and owing the bank.
Why is it taking so long for my available balance to update?
Transactions that haven’t been fully posted to your account can take up to three business days to clear. However that time frame can vary based on factors such as the bank or card issuer, the payment network, and the type of transaction.
Here’s a general idea of how long you can expect certain types of pending transactions to take:
- Cash deposit: The next business day
- Check deposit: Within two business days
- Credit card purchase: Up to three days
In some cases, a portion of a deposit may be unavailable for some time while your bank validates the check.
If you’re ever worried about a pending transaction or why money isn’t showing up in your available balance, contact your bank to ask. Holidays and weekends, for example, can cause delays. Keep this in mind as you manage your transactions.
Frequently asked questions (FAQs)
You might overdraw your account if you spend based on your current balance, which excludes pending purchases. If you’ve opted in for overdraft protection, your financial institution can cover shortages on your checking account typically for a fee. Check with your bank about the terms and conditions of any overdraft protection programs it may offer.
In some cases, your available balance may appear higher than your current balance. The available balance may reflect a refund or an overdraft protection buffer, for example.
Your available balance is usually the lower of the two figures due to pending payments. If you’re struggling to understand why your current and available balances differ, contact your bank for help with finding the discrepancy.
The best way to avoid overdraft fees is to make spending decisions based on your available balance, which includes pending payments and deposits. Check your balance daily for the most up-to-date total because pending transactions can change it quickly.
Your available balance can adjust daily, depending on the financial institution and the type of transaction. Deposits will increase your available balance, and withdrawals and purchases will reduce it. Remember to account for checks that haven’t been cashed as well as scheduled bill payments and debits.
FAQs
Your current balance reflects the amount of money in your bank account at any given moment. Your available balance is the amount of money you have to spend, including any pending payments and deposits. The key difference is that your pending purchases do not appear in the current balance.
Should I go by current balance or available balance? ›
Using the available balance instead of the current balance can help reduce the chance of overdrawing your account, which could trigger overdraft fees and possibly NSF fees.
Why are my present balance and available balance different? ›
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.
Is current balance what I owe? ›
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.
Can I withdraw my available balance? ›
The available balance can be utilized by the bank account holder in the following ways: Cash withdrawal: The available balance can be taken out of the account in cash at an ATM or with a bank teller. Expenditure via debit card: The debit card transfers money from the money in the checking account.
Is it good to pay your current balance? ›
Paying your statement balance in full before or by its due date can help you save money on interest charges. Alternately, paying your current balance in full by its deadline can improve your credit utilization ratio and your credit health.
How long does it take for current balance to become available balance capital one? ›
Most deposits into 360 Performance Savings, 360 Savings, 360 Money Market, Essential Savings, Confidence Savings and Kids Savings Accounts are subject to a 4 business day hold before they can be withdrawn.
Why do I have money in my current balance but not my available balance? ›
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.
What is the meaning of current balance? ›
For help managing your wealth and all your finances, consider working with a financial advisor. What Is Current Balance? The current balance is all the money that is in your bank account right now. This balance might include pending transactions, like a credit card payment or a check that hasn't cleared.
What is the difference between actual balance and available balance? ›
Your actual balance, or sometimes just called balance, is the total of all the transactions on your account including any pending transactions. Available balance is what is available for you to use out of this actual balance – typically this is your actual balance minus any pending transactions.
Quick Answer. A statement balance is the amount that's due at the end of a billing cycle, while your current balance is your total balance as of today.
What happens after I pay my current balance? ›
Pay the current balance: This covers your statement balance plus any charges you've made since the end of the billing cycle. It will bring your balance to $0, which is good, but not necessary to avoid interest.
Should I pay off my credit card in full or leave a small balance? ›
Bottom line. If you have a credit card balance, it's typically best to pay it off in full if you can. Carrying a balance can lead to expensive interest charges and growing debt.
Can I spend my current balance? ›
Can I spend my current balance? You can, but you have to be mindful about other financial transactions you have made. Your current balance reflects all your money, in addition to funds that are being held or are in transit, such as checks.
How long does it take for current balance to become available balance? ›
It'll take a couple of days for that check to clear, and once it does, that money will be part of your available balance. Your available balance is a better figure than your current balance to judge how much money is in your account.
What does current balance vs available credit mean? ›
The primary difference between the current balance and available credit is that the current balance reflects the amount you currently owe, while the available credit represents how much credit you have left to use on your card.
Why is my current balance higher than what I spent? ›
If you haven't made any payments and have made additional purchases since your billing cycle ended, your current balance will likely be more than your statement balance. These two numbers could also be the same if you made purchases during your billing cycle but didn't make any payments.
What does available balance mean for direct deposit? ›
Your available balance is the total amount of money that you have immediately accessible from your account. Your available balance typically reflects items that have been paid from your account, as well as certain same-day transactions (such as debit card purchases and direct deposits) that are pending.
Why is my current balance negative? ›
A negative credit card balance is when your balance is below zero. It appears as a negative account balance. This means that your credit card company owes you money instead of the other way around. Typically, this happens when you've overpaid your outstanding balance or if you've had a credit returned to your account.
Do pending transactions show in current balance credit card? ›
Pending Transactions are deducted from your available credit immediately, but are not included in your Account balance. The charge only becomes part of your Account balance once the merchant submits the transaction amount to us.
