Balance discrepancies explained: Members may notice fees charged even when their balance appears positive. This often results from the difference between a current balance and the available balance.
Current vs. available balance:
- Current balance shows the total amount in the account, including pending transactions that haven’t cleared.
- Available balance reflects the funds actually available to spend after pending (on-hold) transactions are accounted for.
How pending transactions affect your balance:
- Debit card purchases, electronic payments, or other pending transactions temporarily reduce your available balance.
- These transactions might not immediately appear in the current balance, creating a misleading view of available funds.
When fees occur:
- If multiple pending transactions post at once, your account balance can fall below zero.
- This may trigger Non-Sufficient Funds (NSF) or overdraft fees, even if the current balance appeared positive at the time.
Why it looks confusing later:
- When reviewing account history, it may seem that the balance was positive when fees were charged.
- That’s because most online and mobile banking platforms display the current balance rather than the available balance.
How to avoid unexpected fees:
- Monitor your available balance-it’s the most accurate reflection of what you can safely spend.
- Keep track of any pending transactions before making additional purchases or withdrawals.
- Make the most of your Credit Union’s Alerts feature-found under “Tools” in your online banking portal or mobile app. These fully customizable alerts will notify you when it’s time to add more funds to your account!