Difference Between Current Balance and Available Balance

The amount of money in an individual’s account is called Balance. In banking, current and available balance are often confused terms.


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People often think of the same terms. But there is a slight difference between the two. In accounts, if there is a difference between the debit and credit amount in a given period, then it is also referred to as balance.

If credit and debit value becomes equal, it is termed zero balance. Balance reflects the net worth of liabilities and assets in the account.

Key Takeaways

  1. The current balance represents the total amount in an account, including pending transactions.
  2. The available balance shows the accessible funds for immediate use, excluding pending transactions.
  3. Reviewing both balances helps avoid overdraft fees and better manage finances.

Current Balance vs Available Balance

The current balance is the total amount of money in a bank account but does not reflect pending transactions or holds. The available balance is the amount of money currently available in a bank account. It considers any pending transactions or controls on the history that has not yet been processed.

Current Balance vs Available Balance

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The Current Balance is the total amount in an account. It is superficial money that gives a vague idea to a bank account holder about its history.

The different countries in the world also maintain the current Balance. Balance of payments is where various countries keep a record of all monetary transactions.

The current balance of a particular country is maintained. It helps all the other countries to know about the capital, services, markets, investments etc. The current Balance, in theory, Theory remain zero.

But it is not possible in reality. So it is used to tell whether the individual’s account or countries; account is in surplus or deficit.

Available Balance is like an on-demand balance where an individual can use whenever they want. It is free to use.

Available Balance includes all the transactions like deposits, checks, withdrawals etc., that has been cleared by the bank.

If a person holds a credit card, then the available balance in its account is referred to as available credit. It includes the funds that can be used by the customer immediately without any delay.

Available Balance is updated by the bank continuously as and when a customer takes out the money or deposits it.

Comparison Table

Parameters of ComparisonCurrent BalanceAvailable Balance
MeaningTotal AmountCurrent Balance- Debit
In TheoryShould be ZeroFor immediate use.
IncludesAll the pending transactionsAll the cleared transactions.
ComponentsGoods, Income, Services, and Current transfers.Transfer, Purchase, Deposits, Checks and withdrawals.
Formula​CAB=(X−M)+(NY+NCT)PAB = On Hand + Scheduled Receipts – Total Demand

What is Current Balance?

In theoretical terms, the Current Balance should ideally be zero. But it is not possible in reality. Current Balance always shows the bank holder where the amount in their account is in surplus or on the deficit.

The Current Balance is the total money available. It plays a key role in maintaining the monetary activities and transactions of the countries.

Various factors form the components of the current balance. The current Balance doesn’t mean that all the money in the account can be spent.

 Current Balance is very easy to check either by opening a mobile app or through the internet, via ATM or visiting the nearest local branch.

It is very important to check the current balance regularly as it gives you an idea of your account. For planning any big upcoming event, the current balance gives us a broad idea and scope.

It includes all the pending transactions like deposits, transactions, withdrawals etc. 

Current Balance holds an important role in the countries’ surplus or deficit. Whether the economy is weak or strong depends upon the various factors of the current balance.

Goods, Income, Services and Current Transfers. The current Account Balance tells the whole world if a country is a net creditor or net debtor.

It is essential to examine the effects and what will fuel the debit or credit of the account.

What is the Available Balance?

Available Balance is the balance that shows how much funds are available for immediate use in an individual’s account.

Available Ballance is updated by the individual’s bank continuously depending upon its daily or month transactions.

Any activity, whether the amount is debited from ATM or credited into the account or taken from the store or online. 

All the things get updated. It doesn’t show any pending transactions. All the transactions in the available balance are explicit.

Whenever we open the online portal of any bank, then it will always show the column of the available balance.

An individual’s available balance is necessary, and the customer can use it until it doesn’t exceed the limit. There are exceptional cases where available balance can get affected positively and negatively. 

Main Difference Between Current Balance and Available Balance

  1. The current Balance means the total amount in your account. Available Balance means current balance – debit.
  2. In Theory, Theoryrrent Balance should be zero. Available Balance should be available for immediate use.
  3. The current Balance includes all the pending transactions. Available Balance includes all the cleared transactions.
  4. Components of the Current Balance are Goods, Income, Services, and Current transfers. Components of Available Balance are transfer, Purchase, Deposits, Checks and withdrawals.
  5. The formula of the Current Balance is CAB=(X−M)+(NY+NCT). The formula of Available Balance is PAB = On Hand + Scheduled Receipts – Total Demand.
  1. https://content.iospress.com/articles/journal-of-vestibular-research/ves00334
  2. https://ieeexplore.ieee.org/abstract/document/7829384/
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