Can you withdraw funds from your bank account balance?
If you are wondering if you can withdraw funds from your bank account balance, the answer is a definite yes! — type of.
The answer is yes because your bank account balance tells you how much money you have in your account. This money is there so that you can withdraw it or leave it in place, perhaps to earn interest on it.
The answer isn’t quite yes, however, as your balance may not be exactly what it appears to be. This reflects the value of your account, but some funds may not yet be available. If you recently deposited a check, for example, it may not have cleared yet. Checks deposited can take several business days to clear. The folks at the Consumer Financial Protection Bureau, or CFPB, put it this way: âUsually, if you deposit a check for $ 200 or less in person with a bank employee, you can access the full amount the next business day. If you deposit more than $ 200, you can access $ 200 on the next business day and the rest of the money on the second business day. “
It’s not that simple either, as banks and credit unions consider a business day to be closed at different times of the day. So if you deposit a check at your bank at 3:30 p.m. on a Monday and your bank considers its business day to be closed at 3:00 p.m., you may not have access to the first $ 200 of your deposit the next day, Tuesday, because your bank will consider it to have been deposited on the next business day (Tuesday), even if the calendar at the time of deposit indicated Monday.
The CFPB also wants consumers to know that deposits can be cleared particularly quickly if they are made from an account at the same bank, from a government check or by cash, money order or certified check. . They may take longer to clear if they are for large sums, are deposited through an ATM that does not belong to your financial institution, seem problematic in some way, or if you are a new account holder or if you have bounced back. too many checks lately.
So the trick to knowing how much you can actually withdraw from your bank account is to look not at the balance shown, but at your “free funds”. You can ask a bank teller what your available funds are, or you can search for them online through online banking.
It might seem like a minor topic, but not being familiar with the rules can be costly. The median fee for a single bad check was recently around $ 35, according to The Pew Charitable Trust findings.
Are you ready to start investing, but not sure where to start? Check out The Motley Fool’s Brokerage Center today.
This article is part of The Motley Fool Knowledge Center, which was created based on wisdom collected by a fantastic community of investors. We would love to hear your questions, thoughts and opinions on the Knowledge Center in general or on this page in particular. Your contribution will help us help the world invest, better! Write to us at knowledge [email protected]. Thank you – and crazy!