what is the difference between + running balance and - available balance?

laurenjs88

Hi,

Im new to A&L and puzzled by my internet banking.


My running balance is £78.28

But my available balance is - £127.72

I paid in a cheque for £200 on the 14th Jan so i assume this hasnt cleared yet but has been included in my running balance on my summary...

I don't think i am overdrawn but im not sure! Is my available balance not including the cheque as it hasnt cleared yet?

Hazzanet

I would say that you're overdrawn as the cheque hasn't cleared. Was the balance zero before the cheque went in?

laurenjs88

no it had over £200 in but nursery fee's have come out, they arent bouncing anything direct debit wise so i am confused! my RB + AB = £200 So i wonder if that is infact my cheque waiting to clear?

withnell

Yes it's the cheque - the running balance includes this. The cheque balance will add to the available 4 working days after being paid in, so 20th. Up until then as your available balance is negative, you will be paying overdraft charges unless you are within some interest free period

dunstonh

You may avoid overdraft charges depending on your bank but incur overdraft interest instead. Different banks have different ways of treating uncleared funds.

izools

The available balance is your running balance, minus pending authorisations to your debit, minus cheque funds waiting to clear, plus authorised overdraft limit.

Example -

£100 "Running Balance". Use debit card for 2x £50 transactions and pay in £100 cheque, the Running Balance will still be £100, to cover the uncleared cheque funds and pending transactions on the debit card. The available balance would be £0 until the cheque clears unless there is an overdraft.