Average Collected Balance

AAA

DEFINITION of 'Average Collected Balance'

The average balance of collected funds (less any uncleared or uncollected deposits) in a bank account over a specified period, usually one month. The average collected balance is calculated by adding the daily collected balance and dividing by the number of days in the period.

INVESTOPEDIA EXPLAINS 'Average Collected Balance'

The average collected balance is used to determine the amount of interest to be paid on a monthly balance, since uncollected funds do not earn interest.  For most individuals, the difference between the average daily balance and average collected balance will be small, but for businesses it may be very large.

RELATED TERMS
  1. Account Balance

    1. The amount of money in a financial repository, such as a checking ...
  2. Checking Account

    A transactional deposit account held at a financial institution ...
  3. Float Time

    The amount of time between when an individual writes and submits ...
  4. Available Balance

    Balances in checking or on-demand accounts where there is a delay ...
  5. Average Balance

    The balance on a loan or depositary account. A simple average ...
  6. Average Revenue Per User (ARPU)

    A measure of how much income a business generates, given the ...
Related Articles
  1. Your First Checking Account
    Insurance

    Your First Checking Account

  2. APR and APY: Why Your Bank Hopes You ...
    Investing Basics

    APR and APY: Why Your Bank Hopes You ...

  3. Demystification Of Bank Accounts
    Options & Futures

    Demystification Of Bank Accounts

  4. How Bank of America Holds 1/8 of All ...
    Stock Analysis

    How Bank of America Holds 1/8 of All ...

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center