Difference Between Current Balance and Available Balance

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This article highlights the difference between Current Balance and Available Balance in a bank account. There is a slight difference between the current balance and available balance in a bank account. The two may differ because of pending transactions in the account that have not yet been processed.

The current balance is the total amount of money in your account. It includes all pending transactions that have not been cleared or processed. You can’t withdraw, transfer or spend what is in the current account. Funds in the current balance may be from deposits made or cheques written but have not been processed. Such funds are not available for use.

On the other hand, available balance is the total amount of money in your bank account that you can withdraw, transfer or spend. Available balance gives an accurate view of what you can spend at any given time. It also gives a view of funds you have immediate access to. It may include credit available, that is if you have any credit linked to your checking account.

When planning to do quick transactions or purchases, it is advisable to refer to your available balance. This is because you can access the funds at any given time. For the current balance, you will have to wait until pending transactions are processed or approved.

Current balance and available balance can be checked via mobile app, online account, bank teller or through ATM. Avoid using public WiFi at all costs whenever you are accessing your bank account online or through the mobile app.

Hackers can easily access your accounts and steal from you whenever you are using public WiFi. Also, remember to log out of your account once you finish transacting, this is if you are using a mobile app or accessing your account online.