AVAILABLE BALANCE Meaning and
Definition
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The term "available balance" refers to the amount of funds or resources that are currently accessible or ready for immediate use in a particular account, such as a bank account or financial institution. It represents the net balance or remaining amount after accounting for any pending transactions, holds, or restrictions that may affect the total balance of the account.
The available balance takes into account various factors that may affect the account's usability. This includes deposits, withdrawals, cleared checks, and electronic transfers that have been processed and settled. It excludes any pending transactions that have not yet been cleared or finalized, such as outstanding checks yet to be cashed or pending deposits that are still being processed.
It is important to note that the available balance could differ from the actual or total balance shown on an account statement, as it reflects only the funds that are immediately available and unrestricted for use. Any outstanding holds, fees, or other limitations imposed by the financial institution could impact the available balance. It is, therefore, crucial for individuals to routinely review their available balance to ensure accurate financial planning and avoid potential overdrafts or insufficient funds situations.
Overall, the available balance is a measure of the actual funds that can be utilized for transactions or withdrawals from a specific account at a given point in time.
Etymology of AVAILABLE BALANCE
The word available comes from the Old French word availier which means to help or to be of use. It was derived from the Latin word ad- which means to and valere which means to be strong or well. The word balance comes from the Latin word bilanx which means having two scales or equilibrium. It was ultimately derived from the Latin words bi- meaning two and lancea meaning a balance. Therefore, the etymology of the phrase available balance combines the meanings of to be of use and equilibrium or to have two scales.
