Float

Definition

  • The amount of time at which funds are debited from the issuer's account.
  • The amount of time banks take to clear or reject (bounce) cheques for payment.

Synonyms
floating cheque, cheque float, waiting period, cheque float period, cheque waiting period

Related Terms and Acronyms

  • Cheque Clearing Definition,
    • When you write a cheque to a person or a company, the cheque is typically cashed when deposited into a bank account. Your chequing account is then debited for the amount of the cheque and the cheque is said to have "cleared."
  • Cheque Hold Definition,
    • The length of time that a financial institution can legally hold a cheque before crediting a customer's account balance and allowing the customer to use the funds.
  • Insufficient Funds (ISF) Acronym,
    • When funds are not enough to satisfy the payment of a cheque or draft made on that account; also known as non-sufficient funds (NSF).
  • Overdraft Minimum Amount Definition,
    • Minimum amount that will be transferred to the accountholder's account if a potential non-sufficient funds (NSF) situation occurs.
  • Overdraft Protection Definition,
    • A service that allows a chequing account to be linked to another savings or line of credit to provide protection against insufficient funds or overdrafts.
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