- 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.
cheque float, cheque waiting period, cheque float period, waiting period, floating cheque
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.