Available vs Balance at FNB: Know the Difference to Avoid Overdrafts
As a First National Bank (FNB) customer, it’s essential to understand the difference between your available balance and your account balance to avoid overdrafts and unnecessary fees. Many people assume that these two terms are interchangeable, but they have distinct meanings. In this article, we’ll break down the differences between available and balance at FNB, and provide tips on how to manage your account effectively.
What is my Account Balance?
Your account balance refers to the total amount of money in your account, including any uncleared transactions, such as checks or debits that have not yet been processed. This balance is essentially a snapshot of your account’s activity at a given point in time. It’s the total value of all the transactions that have been recorded in your account, whether they have been settled or not.
What is my Available Balance?
Your available balance, on the other hand, is the amount of money that is immediately available for you to use. It takes into account any pending transactions, holds, or debits that have not yet been processed. In other words, it’s the amount of money that you can safely withdraw or use without going overdrawn. Your available balance is updated in real-time to reflect any changes in your account activity.
Key Differences
Here are the key differences between your available balance and your account balance at FNB:
Uncleared transactions: Your account balance includes uncleared transactions, while your available balance does not.
Pending transactions: Your available balance takes into account pending transactions, such as debit card transactions or checks that have not yet been processed.
Holds: Your available balance may be reduced by holds, such as those placed on deposits or transactions that are under review.
Why is it Important to Know the Difference?
Understanding the difference between your available balance and your account balance is crucial to avoiding overdrafts and related fees. If you only check your account balance, you may not realize that you have pending transactions or holds that could reduce your available balance. This can lead to accidental overdrafts, which can result in expensive fees and damage to your credit score.
Tips for Managing Your Account Effectively
To avoid overdrafts and make the most of your FNB account, follow these tips:
Check your available balance regularly: Make it a habit to check your available balance regularly, especially before making large purchases or withdrawals.
Keep track of your transactions: Monitor your account activity closely to ensure that you are aware of any pending transactions or holds.
Set up account alerts: Set up account alerts to notify you when your available balance falls below a certain threshold or when a pending transaction is processed.
Use the FNB mobile app: The FNB mobile app allows you to check your available balance and account activity on the go, making it easier to manage your account effectively.
Conclusion
In conclusion, understanding the difference between your available balance and your account balance at FNB is essential to avoiding overdrafts and related fees. By keeping track of your available balance and monitoring your account activity closely, you can make informed decisions about your spending and avoid unnecessary expenses. Remember to check your available balance regularly, keep track of your transactions, and set up account alerts to stay on top of your account activity. With these tips and a little practice, you’ll be able to manage your FNB account effectively and avoid overdrafts.
