Bank collection float
Bank collection float
The time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Availability Float
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. See also: Check hold.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved