Posted balance

A deposit can be recorded in your account before all of that money is available to use. A debit card purchase can do the reverse, reducing what you can spend before it posts. Money included in your posted balance is not necessarily available to spend. To understand the difference, check which transactions have posted and which holds affect your access to the money.

In a sentence

• "My posted balance is $2,000, but the bank shows only $1,300 available."
• "I use my posted balance to reconcile recorded transactions, not as my spending allowance."
• "That card purchase is pending, so it has not reduced my posted balance yet."

How it works

A posted balance follows the transactions recorded in your bank account's ledger.

1. Start with the posted balance at an earlier point, such as the beginning of your statement period.
2. Add credits posted since then, including deposits, interest, and refunds.
3. Subtract debits posted since then, including withdrawals, purchases, bill payments, and fees.
4. Leave transactions still marked pending out of this calculation.

Posted balance = previous posted balance + posted credits − posted debits

A pending transaction can affect the amount available without changing the posted balance. A hold on a deposit can also restrict money already included in the posted balance. Posting and availability are separate questions, so the transaction list alone may not explain how much you can withdraw.

Posted does not mean irreversible. A later correction, reversal, or returned deposit can change the account balance.

An example

Your checking account starts with a posted balance of $1,500. The bank posts an $800 check deposit and a $300 bill payment. For this example, $500 of that deposit remains on hold, and a separate $200 pending card authorization reduces the available balance without having posted; assume no other adjustments.

The $700 gap consists of the $500 deposit hold and the $200 pending authorization. If the $200 purchase posts and its matching authorization hold is removed at the same time, with nothing else changing, the posted balance becomes $1,800 while the available balance stays $1,300.

Why it matters

Your posted balance helps you reconcile the bank's records with your own. If the balance changes, posted credits and debits should explain the movement. Using the posted figure as a spending limit instead can commit money that is held or already needed for a pending purchase.

Even the available balance may omit checks you wrote or bills scheduled for later. A cash flow forecast accounts for those upcoming movements and expected deposits. The distinction prevents three different questions from becoming one number: what the bank has recorded, what the bank makes available, and what your commitments leave you free to spend.

Posted balance versus available balance

A posted balance reflects recorded transactions, while an available balance reflects what the bank currently makes available for use after applicable holds and other adjustments. Pending withdrawals and deposit holds can make available balance lower than posted balance, as in the example.

Neither figure is a complete household spending plan. Money can be available at the bank but already reserved in your budget for rent, an annual bill, or a savings goal. Read the bank's explanation of its balance labels rather than assuming every institution uses them identically.

Common questions

Which balance should I check before spending? Check the bank's available balance, then account for commitments that figure does not yet reflect. Do not subtract a pending charge again if the available balance already includes its effect.

Can a deposit be posted but still on hold? Yes. Recording a deposit and releasing its funds are separate steps. Check the bank's hold notice and available balance rather than treating the posted deposit as confirmation that every dollar can be used.

When does a pending purchase reduce my posted balance? When the bank posts the debit, using the final amount it records. A pending authorization may differ from the final charge, so reconcile the posted amount rather than counting both entries as separate purchases.

Why doesn't my posted balance match what my budget says is left? Your posted balance includes money carried over from earlier periods and reflects recorded account activity. Your budget compares planned amounts with spending and may reserve money for obligations that have not reached the bank yet; the two figures answer different questions.

Go deeper

• Why your budget never matches your bank balance separates account balances from spending plans and money already committed.
• How often a budgeting app syncs with your bank explains why a displayed balance can be an earlier snapshot rather than the bank's latest figure.
• How much money should I keep in my checking account? connects upcoming payments, pending activity, and a cash cushion without counting the same payment twice.