Available Balances
What is an available balance?
Most simply, the available balance is the amount of money in an account that can be withdrawn at a particular time by the account holder. It is also called “available funds.”
How is the available balance calculated?
Available balance = current balance + today’s cleared deposits + credit lines - pending withdraws - any funds on hold.
Current balance is the balance on the account at the close of the previous business day. For consumer accounts, “credit lines” are most commonly overdraft protection features on an account that allow more funds than are currently in the account to be withdrawn. These overdraft protection features are sometimes called a “cash reserve.” Importantly, “any funds on hold” can include deposits that were made today but have not yet cleared.