What is an Availability Float?
When you write a check, send it in the mail and wait for a person or company to deposit it, there’s a certain amount of time involved in the money being actually deducted from your checking account. Similarly, if you take a check from someone and deposit it in your account, you bank may impose certain rules about when that money becomes available to you, particularly if the check is large, or comes from a private person or foreign entity. This time, either waiting for money to be deducted or added to your account is called an availability float. During the time of an availability float, where you’re waiting for someone else to deposit a check you wrote, the money in your bank is still at your disposal. However, it’s a very good idea not to use it, and to record it in your check register to make certain that you don’t bounce a check. You can’t always determine how long an availability float on your check will last. A company could quickly turn it around and deposit it, or not receive or
