DEFINITION of 'Book Transfer'

The transfer of funds from one deposit account to another at the same financial institution. Book transfer is a way to eliminate check clearing float because unlike with interbank transfers, there is no wait time for intrabank transfers.





BREAKING DOWN 'Book Transfer'

Check clearing float refers to the time between when a check is deposited and when it is cleared. If someone deposits a check today, there is a time difference between depositing the check and when the check will be paid. This time lapse enables the paying bank to earn some extra interest on those funds.

RELATED TERMS
  1. Book Balance

    Funds on deposit prior to any adjustment for check clearing, ...
  2. Transfer

    A change in ownership of an asset, or a movement of funds and/or ...
  3. Negative Float

    The period of time between when a bank customer writes a check ...
  4. Automatic Transfer Service - ATS

    A banking service offered to customers that has both a general ...
  5. Telegraphic Transfer - TT

    An electronic method of transferring funds. Telegraphic Transfers ...
  6. Current Transfers

    A current account transaction in which a resident entity in one ...
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RELATED FAQS
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  3. How long does it take a check to clear?

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