Uncollected Funds
What are Uncollected Funds?
Uncollected funds refer to the balance of uncleared checks in a bank account.
How Do Uncollected Funds Work?
When an account holder deposits a check into a savings or checking account, the bank must collect the specified amount of cash from the check writer's bank account. This collection takes place during a bank's clearing cycle, which may occur once or twice each business day.
Uncollected funds are the portion of the account balance that includes check amounts that have not yet cleared. For example, if an account holder deposits a check for $100, the $100 represents uncollected funds until the check clears.
Why Do Uncollected Funds Matter?
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
