The current balance represents the total amount of money in an account.
While often used interchangeably, it's important to differentiate between current balance and available balance. Here's a breakdown:
Current Balance vs. Available Balance
| Feature | Current Balance | Available Balance |
|---|---|---|
| Definition | The total amount of money in the account. | The amount you can actually access and use. |
| Reflects | All transactions, including pending ones. | Funds immediately available for withdrawal or use. |
| Important Because | Shows the overall financial position. | Indicates spending power and prevents overdrafts. |
Why is Available Balance Important?
According to information available on 27-Jun-2024, it's important to track your available balance because:
- It reflects the funds you can actually withdraw and use.
- It may be less than the current balance due to pending transactions or holds.
- Tracking it helps prevent overdraft fees and ensures you don't spend more than you have readily accessible.
