Can You Withdraw Out Of Your Ledger Balance

Bank accounts typically have two balances, one known as the ledger balance and the other as the available balance.

A ledger balance is generally updated once per day and includes deposits and withdrawals that have already cleared, whereas an available balance can be updated more frequently and can include check and other deposits that have not yet been fully cleared.

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What Is A Ledger Balance?

The ledger balance is the opening balance in the bank account the following morning and remains constant throughout the day.

Banks computes ledger balances at the end of each business day, which includes all withdrawals and deposits to determine the total amount of money in a bank account. 

The ledger balance, which differs from the available balance in an account, is also known as the current balance. If you log into your online banking, you will be able to see your current balance—the balance at the start of the day—as well as your available balance, which is the total amount at any point during the day.

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Difference Between Ledger And Available Balance

In banks, the terms for the cash position of a checking account are ledger balance and available balance. 

The ledger balance is the available balance at the start of the day while the available balance can be defined in two ways, which are;

The ledger balance, plus or minus any subsequent activity during the day; in essence, it is the ending balance at any point in time during the day

The ledger balance, less any checks deposited but not yet made available for use by the account holder, as well as any other credits not yet posted to the account.

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Takeaway

Yes, you can withdraw funds from your ledger balance, but you should first check your available balance to ensure that the funds are present. This is because your available balance is updated far more frequently than your ledger balance.

Originally posted on March 14, 2022 @ 10:07 am