Current Balance vs. Available Balance: What's the Difference?

CCCU’s online banking is a convenient way to monitor your credit union account, track your spending and pay bills. When you log into your account, you'll notice that a current balance and an available balance are provided.

It's essential to understand the differences between these two balances so that you can better monitor your finances. Here's what you need to know.

Current Balance

The current balance for your bank account consists of the money that's actually in your bank account. It doesn't take into account transactions that are pending or those that haven't posted. Or, if you've made a deposit that isn't available to spend, your current balance reflects this.

Available Balance

Your available balance is the money actually available to spend in your account right now. It's your current balance, less any pending transactions. Pending transactions include debit card transactions, pre-authorized transactions, ATM withdrawals, and in-person withdrawals.

If you've received a direct deposit or made a deposit but it hasn't posted to your account, it can take a few days for these items to become available.

Current Balance vs. Available Balance Explained

Assume that you begin the day with $1,000 in your bank account. Both your available and current balances start at $1,000.

You use your debit card to withdrawal $100; now, your available balance is $900, but your current balance is still $1,000. Then, you spend $150 at the grocery store with your debit card. This decreases your available balance to $750. Your current balance remains at $1,000.

You deposit a check for $500 that will be available in one business day. This time, your available balance remains the same, and your current balance increases to $1,500.

Which Balance Should You Use?

However, your available balance isn't necessarily how much you have to spend. If you've written any checks or issued bill pay payments, your available balance may not reflect these items. Deduct the amounts of your checks and bill pay payments from your available balance. Don't spend any deposits until they've posted to your account or are reflected in your available balance. When you access your CCCU account online or on your phone, use your available balance to determine how much money you have to spend. Remember, it includes the amounts of your pending transactions.

Have more questions about your accounts? Connect with CCCU for assistance!