Float

Definition

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

Synonyms
cheque float, waiting period, cheque float period, cheque 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.
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