Net Float

Net float

Sum of disbursement float and collection float.

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Net Float

The total amount of float in a bank account. It is calculated by subtracting the disbursement float money spent but not yet taken out of the account from the collection float money deposited but not yet cleared. The net float, when added to or subtracted from the previous balance, shows how much money is in the bank account. The net float is important when an account holder deal primarily in checks, and, thus, transactions take longer to process; it is less important when an account deals primarily in direct deposits and debit cards. See also: Check hold.