Available Funds

Available Funds

WebDynamic™ Web Glossary

Available funds are funds that have been deposited into a financial institution and are available for withdrawal by the account holder. Funds availability rules became widespread in the late 1980s to early 1990s when the US Congress enacted legislation (known as the Expedited Funds Availability Act) limiting the number of days financial institutions could "hold" funds from cheque deposits.

Available funds refers to the total amount of funds available to you from you own funds or other sources that can be used at your discretion. For example, if you deposit a cheque into your savings account, the value of your available funds will not include the cheque amount for several days, until the cheque has been cleared by your bank.