Future Dating

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DEFINITION

Crediting a bank account to which the funds will be made available at a later date. It is done electronically, with the permission of the account holder. The account holder simply gives their account information to the depositing party, giving them the right to only deposit money and perform no other transactions. Alternatively, accounts can also be authorized to pay bills at a certain future date.

INVESTOPEDIA EXPLAINS

This practice is most commonly used with direct deposit from the account holder's employer. It has also now become popular among government transactions as it saves both time and money for both the receiving and depositing parties.


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