Difference Between Available Balance and Posted Balance

Last Updated : Sep 5, 2022 / By Sandeep Bhandari / Fact Checked / 3 mins

The available balance in the bank account refers to the money in the account at the time of requirement. It denotes the difference between a payment that has been significantly processed and a ledger balance.

Posted balance denotes the current cumulative balance that remains whether in the personal or business account for a given time. The posted balance is revised at the end of each day's bank business and remains constant until the bank closes the following day.

Comparison Table Between Available Balance and Posted Balance

Parameters of Comparison	Available Balance	Posted Balance
Significance	The available balance is the amount of money in the consumer's or account owner's banking or on-demand account that is accessible for usage.	The sum of cash right now in a user's account is posted balance. I Beet comprises the total of some outstanding transactions, it will always be equal or greater than the Available Balance.
Impact	Available Balance shows an immediate effect on the transactions during banking.	Posted Balance takes some time to get updated.
During Payment	Available Balance gets updated as soon as a payment is made in any form.	It is the total current Balance that stays in the business account for a given period.
Difference with Ledger	Available Balance clearly shows the difference between payment done and the ledger balance.	It is just the current balance that is shown in a user's account.
Updation	It gets updated quickly (just after the completion of the transaction).	Posted Balance is updated a day or two after the transaction is done.

What is Available Balance? 

The available balance is calculated by subtracting †holds' with a future and today's date from the posted amount. Customers are not permitted to use an †hold' number.

It is the balance that a person can use at any time. It represents the distinction between a heavily processed payment and a ledger balance.

Although listing the account and existing bank balance, this sum is usually what allows an overdraft to happen. Banks use the available balance to calculate fines and overdraft charges when caps are exceeded.

What is Posted Balance?

It is the real balance of one's bank account that is immediately available for use. It is measured as a transactional outcome from the past.

Correspondingly, a previously reported balance applies to the amount as of the close of the day, just well before the prior job day.

Any payments, sales, keeps, deposits, or other charges made to the account after the posting date will not be reflected until the next business day's posting time. 

The posted balance is the real balance that has been posted on the user's account actual balance. A "stop" is the sum that a bank does not allow a customer to use.

Main Differences Between Available Balance and Posted Balance

1. The available balance is the amount of money in the consumer's or account owner's banking or on-demand account that is accessible for usage. On the other hand, the sum of cash right now in a user's account is posted balance. Beet comprises the total of some outstanding transactions. It will always be equal or greater than the Available Balance.
2. Available Balance shows the immediate effect on the transactions during banking, whereas Posted Balance takes some time to get updated.

Conclusion

To effectively control the funds, one must first comprehend banking activities and how they affect the account balance. Cash and check deposits, as well as internet cross transactions, are examples of credit entries.

References

1. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3033730/
2. https://books.google.co.in/books?hl=en&lr=&id=bbchq6yAoe4C&oi=fnd&pg=PR17&dq=types+of+balance+in+banking&ots=uyDWnco8wu&sig=w3Y-_zzEiQkmo7FRZvSvgdwa4aQ&redir_esc=y#v=onepage&q=types%20of%20balance%20in%20banking&f=false