What's the difference between account balance and available balance?
I now I've already asked but I still don't get it. I've got £30 in my account balance and £5 in my available balance, what's does that mean? and can I claim my account balance? Thank you
Personal Finance - 7 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
the same thing happens to me when I deposit cheques into my account, I think it is because they are waiting to be approved, it's either that or that fact that your account could require a minimum amount (25) in it all times
Answer 2 :
it means that you can only withdraw £5 the other £25 is what they call ear marked... if there is something that you have bought that is due to come out your account and it is in that process, or if paid in cheque of £25 then is in process of going into your account.
Answer 3 :
Usually this means that you've bought something using a card (ie for £25) or a direct debit is due out that hasn't been taken out of your account yet, but your bank has 'ringfenced' that amount so you can't spend it. So your balance shows as £30 cos the £25 hasn't been taken out yet, but you only have £5 available to actually spend. Unless you have an overdraft, I doubt you'll be able to draw out any more than £5.
Answer 4 :
Right your account balance is what is technically in your account and your avaliable balance is what you can withdraw / access. U can't claim your account balance. Reasons your account balance can be higher than your avaliable balance are for example money that hasn't cleared in your account yet or money that has been reserved in your account for payment such as direct debits or card payments u have made in a shop which hasn't actually left your account yet but is due to at some point. Basically pay no attention to your account balance - u can't access it - and just check ur avaliable balance.
Answer 5 :
When you deposit a cheque into your account it takes approximately 3 to 5 working days to clear. That is the time it takes for your bank to send the cheque to the other bank and ask them for the cash so that they can put it into your account. So the account balance is £30 because it includes that cheque you recently banked into it. However as the cheque has not cleared yet, you can only draw £5 at the moment. In a few days when the cheque has cleared you will be able to draw out the remaining £25.
Answer 6 :
Account balance is what is actually your money but not what you can always withdraw. Available is what you can actually spend, this will include your overdraft as well (if you have one). So things that affect these balances: Your £30 account balance and £5 available could be because you have spent money using a debit card and the money hasn't left your accoutn but has been 'reserved' so that you don't spend it again or you may have put in a cheque that hasn't cleared. So either your available balance will stay at £5 once the money has been paid to the shop/internet site you have paid money to and this will also change your account balance to say the same or your available will change to show that your cheques have cleared and whatever your overdraft might be.
Answer 7 :
Balance is the total amount that a person has in his account, including all pending transactions while, available balance is the amount that is available for transfer or withdrawal.
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