Available Balance

Posted in Finance, Accounting and Economics Terms, Total Reads: 784

Definition: Available Balance

Available balance are the amount of funds in a person’s bank account which is the net effect of all the transactions that have happened and are going to happen in the future. Available balance is your current account balance amount minus the pending purchases, drafts etc.

The available balance may differ from the balance that can be observed if there has been a delay in credit or debit of a certain amount of deposit in an individual’s bank account. The process of clearance of cheques and drafts come into picture as it may take even a larger amount of time of the transaction is happening between two different banking institutions based out of two different nations.

For example, if there is a delay in a certain amount due to clearance, for example a sum of 50,000 which was deposited has to be withdrawn then the available balance may show a different summary than the actual balance.


Hence, this concludes the definition of Available Balance along with its overview.

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