Available Balance

The available balance is the amount of money in your account that you can withdraw without incurring any fees or penalties. It is calculated by subtracting any pending transactions, such as checks that have not yet cleared, from your total balance.

The available balance is important to know because it is the amount of money that you have to work with when making purchases or paying bills. If you try to withdraw more money than your available balance, your transaction will be declined.

There are a few things to keep in mind when calculating your available balance. First, you need to know what types of transactions are considered pending. This can vary from bank to bank, but typically includes checks, electronic transfers, and direct deposits. Second, you need to know how long it takes for pending transactions to clear. This can also vary from bank to bank, but typically takes a few days.

Once you know what types of transactions are considered pending and how long they take to clear, you can calculate your available balance by subtracting the total amount of pending transactions from your total balance. For example, if you have a total balance of $100 and there are two pending checks for $20 each, your available balance would be $60.

It is important to keep track of your available balance so that you do not overdraft your account. Overdrafting your account can result in fees and penalties, which can be costly. If you are unsure of your available balance, you can always contact your bank or credit union for more information.

Here are some additional tips for managing your available balance:

* Keep track of your spending and make sure that you are not spending more money than you have.
* Set up automatic payments for your bills so that you do not forget to pay them.
* If you know that you are going to be making a large purchase, make sure that you have enough money in your account to cover it.
* If you are ever unsure of your available balance, contact your bank or credit union for more information.