Float

Definition

• The amount of time banks take to clear or reject (bounce) cheques for payment.
• The amount of time at which funds are debited from the issuer's account.

Synonyms
cheque float period, floating cheque, cheque waiting period, waiting period, cheque float

Related Terms and Acronyms

• Cheque Clearing — Definition,
  • When you write a cheque to a person or a company, the cheque is typically cashed when deposited into a bank account. Your chequing account is then debited for the amount of the cheque and the cheque is said to have "cleared."
• Cheque Hold — Definition,
  • The length of time that a financial institution can legally hold a cheque before crediting a customer's account balance and allowing the customer to use the funds.
• Insufficient Funds (ISF) — Acronym,
  • When funds are not enough to satisfy the payment of a cheque or draft made on that account; also known as non-sufficient funds (NSF).
• Overdraft Minimum Amount — Definition,
  • Minimum amount that will be transferred to the accountholder's account if a potential non-sufficient funds (NSF) situation occurs.
• Overdraft Protection — Definition,
  • A service that allows a chequing account to be linked to another savings or line of credit to provide protection against insufficient funds or overdrafts.