Account Balance

An account balance is the amount of money or the net value in a financial account at a specific point in time. It reflects all credits and debits posted to that account and can apply to checking and savings accounts, brokerage accounts, credit cards, loans, and utility or billing accounts.

Key takeaways

• An account balance shows the current value of a financial account (positive for assets, negative for amounts owed).
• Banks and financial institutions provide balances via paper statements, online banking, and mobile apps.
• Brokerage balances can change daily as security prices fluctuate.
• Pending transactions, unprocessed checks, and holds can make a displayed balance different from the actual available funds.

How account balances are calculated

At its simplest, an account balance equals total assets minus total liabilities for that account:
* For deposit accounts (checking/savings): balance = deposits and credits − withdrawals and debits.
* For credit accounts (credit cards, loans): balance = amount owed, including carried-over balances and interest.
* For investment accounts: balance = market value of holdings (which changes with prices).

Note: Posted balances may not include pending transactions, holds, or checks that haven’t cleared, so the available funds can differ.

Examples

• Credit card: Charges of $100, $50 and $25 and one return of $10 result in a balance of $165 ($175 − $10).
• Checking account: Starting balance $500, deposit (or deposited check) for $1,500 → displayed balance $2,000. If an automatic payment of $750 is scheduled but not yet shown, the actual available balance after that payment would be $1,250.

Account balance vs. available credit

For revolving credit (like credit cards):
* Account balance = total debt on the account at the statement or current posting.
* Available credit = credit limit − account balance (adjusted for pending authorizations and holds).
Example: $5,000 credit limit − $1,200 balance = $3,800 available credit (subject to pending holds).

How to check your account balance

• Mobile bank app or online banking.
• ATM or bank branch.
• Paper statement or electronic statement.
• Contacting customer service.

Be sure to review pending transactions and holds to determine your true available funds.

Types of accounts that have balances

• Checking accounts
• Savings accounts
• Brokerage and investment accounts
• Credit cards and lines of credit
• Mortgages and loans
• Utility and billing accounts

Withdrawing your balance

You can withdraw funds up to your available balance. Holds, pending deposits, and pending debits can restrict withdrawals and may cause overdrafts if you spend based on a displayed balance that doesn’t reflect all transactions.

Bottom line

An account balance is a snapshot of what you have (or owe) in a financial account. It’s useful for tracking funds, budgeting, and managing credit, but always confirm pending transactions, holds, and recent postings to understand the true available amount.