Uncollected Funds

Uncollected funds

The amount of bank deposits in the form of checks that have not yet been paid by the banks on which the checks are drawn.

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uncollected funds

A deposit or a portion of a deposit that has not yet been collected by a financial institution. Financial institutions typically prohibit customers from writing checks on uncollected funds.

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Uncollected Funds

A deposit into a bank account that has not yet cleared. For example, one may deposit a check for $1,000 from an out-of-state bank. The funds may be posted to the account immediately, but they will not become available to the account holder until the issuing bank honors the check and transfers the funds to the receiving bank. This process can take as long as five business days. It is also called a collection float. See also: Check hold.