Difference between Balance and Available Balance?

UniStudent_2

Please excuse the ignorance and poor lack of money knowledge, but what is the difference between 'Balance' and 'Available Balance'? I have (approx) £1050 as my Balance, however, only (approx) £65 as my Available Balance. I'm confused as to which figure to look at?!

Thank you in advance for any help

MME_2

The available figure is what you can physically withdraw. You have either a) paid in a cheque that hasn't cleared or b) used your debit card which has earmarked an amount(s) but not yet debited your account.

MoneySaverLog

Available balance usually takes into account funds that are earmarked for something. So I'd go by that

UniStudent_2

Okay, thank you for your help.

So I can only draw out £65. But if I were to draw out the whole £65, would that mean I have £0 as an available balance??

I am so sorry for my ignorance! I'm learning, haha!

Kind regards

Macca83_2

Yeah, you'd have £0 available until either the cheque clears, or if its a debit card payment, until you put more funds into the account

UniStudent_2

Okay, I think I'm getting there with understanding it!

But I'm confused as to where the £1050 figure comes in??

MoneySaverLog

Available balance will also take into account any overdraft you may have also.

mrschaucer

Yes, remember Natwest show any authorised overdraft amounts in with your Balance. As a student (?) you will have an interest free overdraft available to you, but if you don't want to use it then stick to the "available balance".

UniStudent_2

Okay, just to clarify I have a £1000 overdraft and a HSBC account (as a student).

So I'm guessing the £1050 figure takes into account my overdraft. And I can use my overdraft money, no? (Obviously not ideal?)

Oh goodness, I love growing up, haha!

Thank you everyone for your patience, much appreciated!

HappyMJ

UniStudent wrote: »

Okay, just to clarify I have a £1000 overdraft and a HSBC account (as a student).

So I'm guessing the £1050 figure takes into account my overdraft. And I can use my overdraft money, no? (Obviously not ideal?)

Oh goodness, I love growing up, haha!

Thank you everyone for your patience, much appreciated!

Overdraft money should be for emergency only. Don't use it unless you absolutely have to. You don't want to start getting into a debt cycle now.

UniStudent_2

Thank you very much for your help!

I think I'm starting to get there, haha!

So (I know I know, I should know but:) overdraft is treated as a 'loan'? And if I *need* to I can then use it? But not ideally?