It can happen to even the most diligent of budget watchers – an overdraft on your bank account. According to statistics, nearly 20 percent of Americans incurred an overdraft over the past year. This leaves many people wondering, "What does it really mean when I check my account balance?"
One of the major sticking points for people can be the current balance versus the available balance of bank accounts. As more people move to online banking from the days of manually balancing a checkbook, this difference can be critical in how much money you have at your disposal.
Your local Tulsa credit union and most banks do offer overdraft protection as a backup plan in case you make a mistake in your balancing. However, it's important to understand the differences between current balance and available balance and how that can affect your spending and planning. Let's learn how these balances work:
What does "current balance" mean?
What does "available balance" mean?
Why are my balances different?
Can I spend my current balance?
Do pending transactions show in the current balance?
Why is my available balance more than my current balance?
What do I do if I overdraw my checking account?
What does "current balance" mean in my account?
When you look at your account online or speak with a branch teller, the current balance is the total amount of money kept in the account. As you will see later, this may not be the most accurate picture of your account's status.
What does "available balance" mean in my account?
Your available balance is the amount of money in your account, minus any credits or debts that have not fully posted to the account yet. This is the amount of money you can spend, but it may not fully reflect the money you have at your disposal.
Why are my current balance and available balance different?
You may notice upon checking your account balance that these two numbers are not the same. If you've made recent purchases with your debit card, but the financial institution hasn't fully processed the transaction, the current balance will be higher than the available balance. This is also the case if you have written a check that has not yet cleared.
Can I spend my current balance?
You can, but you have to be mindful of other financial transactions you have made. Your current balance reflects all your money, in addition to funds that are being held or are in transit, such as checks.
For example, let's say both your current and available balances are at $100. You use $10 to buy coffee in the morning. Your current balance would still say $100 since the transaction at the coffee shop is still pending. But your available balance would be $90. So, if you also had a check that you mailed that was for $100, and it cleared, you would be overdrawn by $10. More than $11 billion in overdraft fees were paid in 2019 – you don't want to add to that number if you can help it.
You should keep an eye on your available balance if you have recurring payments or a large purchase to make, as that is the balance most affected by new transactions.
Do pending transactions show in the current balance?
No, your pending purchases do not appear in the current balance. That total is the sum of all cleared and posted transactions. So, any purchases you've made in the last day or two (or longer, depending on the day of the week and the timeframe in which your financial institution processes its transactions) will not show in the current balance.
Your available balance is the more accurate snapshot of how much money you have in the account since it does reflect pending transactions.
Why is my available balance more than my current balance?
There are a couple of explanations for this occurrence. One is that you may have recently deposited a check, either via an ATM or mobile deposit. Some financial institutions will add the deposit to your available balance but will not add it to the current balance until they verify the check is good and receives funds from the issuing bank.
The other reason could be that you have an overdraft protection line of credit from your financial institution. Some banks and credit unions offer this service to give customers a little wiggle room if there is an accidental overdraft, but remember, this is a loan and will need to be repaid if used.
What do I do if I overdraw my checking account?
If you’ve overdrawn your checking account, the first step is to take a close look at your transactions and confirm what caused the negative balance. This could be a pending debit card purchase, an automatic payment, or a check that cleared sooner than expected. Once you understand what happened, deposit funds into your account as soon as possible to bring the balance back to zero or above. Acting quickly can help minimize any fees and prevent additional transactions from being declined or adding to the overdraft amount.
Next, it’s a good idea to reach out to your local credit union directly. Unlike larger banks, credit unions in Tulsa often take a more personalized, member-first approach and may be willing to work with you if this is an occasional issue. They can explain any fees that were applied, walk you through your options, and in some cases, offer solutions like fee reversals, payment arrangements, or short-term coverage options, depending on your account history.
To avoid overdrawing your account in the future, consider setting up tools and safeguards that give you more control over your balance. Enrolling in account alerts can help you monitor your balance in real time, while linking a savings account for overdraft protection can automatically cover small shortfalls. You might also review your automatic payments and keep a small buffer in your credit union checking account. Taking advantage of these resources can make it easier to stay on track and avoid surprises.
Frequently Asked Questions
1. What’s the difference between current balance and available balance?
Current balance is the total money in your account. Available balance is what you can actually spend after pending transactions are accounted for.
2. Why is my available balance lower than my current balance?
Because of pending transactions like debit card purchases or checks that haven’t fully processed yet.
3. Which balance should I use when making purchases?
Always use your available balance—it’s the most accurate picture of what you can safely spend.
4. Can I spend the money shown in my current balance?
You can, but it’s risky. Your current balance may include funds that are already committed, which could lead to overdrafts.
5. Why would my available balance ever be higher than my current balance?
This can happen if a deposit is pending. The funds may be partially available before they’re fully verified and posted.
6. Do pending transactions show in my current balance?
No. Pending transactions typically don’t appear in your current balance, which is why it can be misleading.
Ready to Open a Checking Account in Tulsa?
Knowing the difference between your current and available balance can help you avoid surprises and stay on track. If you’re looking for a better banking experience in Tulsa with real support behind it, OCCU is here for you. Open your account online in minutes or connect with our team to get started today.
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