Normally, when you look at your available balance, you expect to see a positive figure indicating that you have money or $0, indicating that your account is empty. However, sometimes rather than see a positive figure ( probably something in the region of $100, $350, 0r $150), your available balance may be in the negative. If you experience such, you’ll surely have questions.
The available balance on your debit card is negative because you overdrew your account. When you overdraw your account, you use more than you have in the account, making it go into the negative.
Is your available balancing in the negative? Having a negative available balance isn’t something you should rejoice about, nor is it something that should make you panic, provided you know how to bring it back up. Below, I have explained why your available balance is negative on your debit card.
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Why Is My Available Balance Negative on My Debit Card?
It’s important to understand what an available balance is before proceeding to the crux of this article.
The available balance is the balance in checking or on-demand accounts that is free for use by the account owner. These funds are available for use anytime, any day, and include deposits, withdrawals, transfers, and any other activity that has already cleared to or from the account. A credit card account’s available balance is often regarded as an available credit.
An account holder’s available balance may differ from the current balance. The current balance includes any unresolved transactions that are yet to be cleared.
Available Balance: What You Should Know?
Like your current balance, you can see your available balance through your online account or mobile application or by checking with a bank teller or ATM.
Sometimes, your available balance may not tally with your current balance, particularly if you recently deposited a check or initiated a purchase, but there are hold-ups in the posting process.
More specifically, when you initiate a check deposit, the bank may retain some or all of it while it takes time to confirm that the check is good and receives the funds from the issuing bank. Holding policies can differ for each bank, so check with yours to get extra information regarding what you can expect.
Regarding debts, if you have used your debit card to make a purchase but the bank has yet to complete the transaction, it may appear pending in your account. At this time, you will still have a current balance that doesn’t include the pending debit, but you’ll only be able to spend the amount you have in the account, assuming that transactions go through.
It’s important to refer to your available funds if you wish to make a purchase or have a repeated payment or transfer in the next couple of days. If the new transaction surpasses your available balance, it could lead to nonsufficient funds, or NSF, fee, or overdraft fee.
Using the Available Balance:
Customers can use the available balance in any way they deem fit, provided they don’t surpass the limit. They should also consider any pending transactions that haven’t been included or removed from the balance. A customer may be able to withdraw funds, write checks, and initiate transfers or purchases with their debit card up to the available balance.
For instance, your bank account balance can be $2,000, but your available balance may be only $1000. That additional $1000 may be as a result of a pending transfer to another account for $500, an online purchase you made for $200, a check you deposited for $800 that is yet to clear because the bank put it on hold, and a preauthorized payment for your car insurance for $500.
You can use any amount up to $1,000 without attracting any additional fees or charges from your bank. If you surpass that, you may go into overdraft, and there may be problems with the pending transaction.
The Reason Why Your Available Balance Is Negative on Your Debit Card
Are you anxious to know why your available balance is negative instead of the usual positive? Is your account balance reading -$100 instead of $200?
If your available balance is negative on your debit card, it means one thing: you have overdrawn your account.
An account overdraft happens when you spend more than what you have in your account. Of course, there is usually a charge attached to doing so. And aside from the charge, your account might be closed if you keep overdrawing your account.
Here is how to prevent overdraft and NSF fees.
My Bank Account Is Negative – What Do I Do?
How to Prevent Overdraft and NSF Fees?
Do you have overdraft protection on your account? If you do, your bank will agree to cover transactions even if you don’t have sufficient money in your account to settle them. In this instance, though, you may be slapped with an overdraft fee if your account balance drops below $0.
Of course, some banks don’t charge an overdraft fee. Others may even offer fee-free overdraft protection that connects your checking account to a savings account to cover overdrawn amounts.
On the flip side, NSF fees occur when you don’t have overdraft protection, you overdraw your account, and the bank refuses to process the transaction. In either case, it’s crucial to note your available balance in your bank account to steer clear of potential fees.
Keep close tables with your checking account often to ensure that your budget is current. Plus, avoid writing checks for more than what you have in your account, even if you expect to initiate a deposit in a few days.
Finally, keep additional cash in your checking account so that you have a small hedge should you make a mistake.
