Float.

In plain English

Float is the short window between when a payment is initiated and when it fully settles. During that gap, the same dollars can look like they are in both the payer's account and the payee's account, because the money has not finished moving through the banking system. It comes up with checks, which take time to clear, and with card and transfer payments that post before they settle. Modern faster-payment systems shrink float, but it still exists, and trying to spend money you only have because of float is how people accidentally overdraw.

01Why it matters

Float can make your balance look bigger than the money you actually have, and spending into that gap is a common way to trigger an overdraft fee you did not see coming.

02The math, step by step

You deposit a 600 dollar check on Monday and your balance jumps right away, but the funds are not truly available until the check clears, often the next business day or later under Regulation CC. If you spend the 600 dollars before it clears and the check bounces, you can be left with a negative balance and a fee. The safe move is to wait until your bank shows the funds as available, not just pending.

03What this is NOT

04Receipts

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