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. An Investor's Guide To Bank Stress-Testing
    Investing Basics

    An Investor's Guide To Bank Stress-Testing

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. 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 ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center