Account Balance

AAA

DEFINITION of 'Account Balance'

1. The amount of money in a financial repository, such as a checking account, at any given moment.
2. The total amount of money owed to a third party such as a credit card company, utility company, mortgage banker or other type of lender or creditor.

The account balance will always be the net amount after factoring in all debits and credits.

INVESTOPEDIA EXPLAINS 'Account Balance'

For example, on a credit card account, you may have made purchases of $100, $50 and $25 and returned an item costing $10. The account balance would include not just the purchases you made, which total $175, but also the item you returned for $10. The net of your debits and credits would be $165 ($175 - $10), and that amount would be your account balance.

RELATED TERMS
  1. Reconciliation

    An accounting process used to compare two sets of records to ...
  2. Account Hold

    Deposits that are delayed before being credited to an account, ...
  3. Checking Account

    A transactional deposit account held at a financial institution ...
  4. Average Balance

    The balance on a loan or depositary account. A simple average ...
  5. Account

    1. An arrangement by which an organization accepts a customer's ...
  6. Available Balance

    Balances in checking or on-demand accounts where there is a delay ...
RELATED FAQS
  1. How do I check the balance on my prepaid credit card?

    There are a few different ways to check the balance on a prepaid credit card using your phone or the Internet. Most prepaid ... Read Full Answer >>
Related Articles
  1. Credit & Loans

    Shuffle Away Your Debt With Balance Transfers

    This option can save you big bucks, but only if you watch out for rates and fees.
  2. Savings

    All About Banking

    This tutorial will tell you everything you need to know about how checking and savings accounts work.
  3. Personal Finance

    4 Tips To Cut Your Monthly Bank Fees

    We asked banking professions to share their biggest tips for tackling bank fees, and hopefully save more even before spring hits.
  4. Savings

    Why Do Credit Cards Expire?

    Credit cards expire for more reasons than you could imagine – including, so you don't forget you have the card.
  5. Credit & Loans

    Meet The Company Behind Your FICO Score

    There are other credit scores that evaluate lending risk, but FICO is still the choice of most U.S. lenders.
  6. Stock Analysis

    How MasterCard Likely Earned a Spot in Your Wallet

    An in depth look at MasterCard and its future prospects as an investment.
  7. Credit & Loans

    6 Ways To Build Credit Without A Credit Card

    It's definitely possible – if a bit more complicated – to build a credit history without traditional credit cards. Just follow these steps.
  8. Credit & Loans

    Terrible Credit Score? Try These Credit Cards

    When your credit is less than stellar you have fewer choices. But some are still better than others. Here's our read on which cards to get.
  9. Credit & Loans

    Barclaycard Arrival Plus World Elite Master Card

    Should you pay the annual fee (waived the first year) for this rewards travel card? See how it compares.
  10. Credit & Loans

    Is PayPal's Credit Card Worth Getting?

    You can use PayPal with credit cards from many issuers. But now you can also use a PayPal card – and apply the rewards directly to your PayPal account.

You May Also Like

Hot Definitions
  1. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  2. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  3. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  4. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  5. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
Trading Center