Cleared Funds
Categories: Banking
"Cleared funds" refers to funds that have been deposited into a bank and are fungible, meaning they can be utilized for transactions, vs. funds that are pending, or awaiting, clearance.
This situation occurs whenever banks only clear a portion of deposited funds in order to capture the overnight interest rate float on the balance, until a deposited check or an incoming transfer holding period is completed. (see: Check Hold).
The banks want your float. Bottom line. Any excuse to hold your money another day so they can make money on it. So sue them.
