Future Dating

AAA

DEFINITION of 'Future Dating'

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 'Future Dating'

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.

RELATED TERMS
  1. Direct Deposit

    Electronic funds that are deposited directly into your bank account ...
  2. Cash In Advance

    When an importer must pay the exporter in cash before a shipment ...
  3. Electronic Payments Network - EPN

    An electronic automated clearing house (ACH) that serves as the ...
  4. Checking Account

    A transactional deposit account held at a financial institution ...
  5. Commercial Bank

    A financial institution that provides services, such as accepting ...
  6. Transaction

    1. An agreement between a buyer and a seller to exchange goods, ...
Related Articles
  1. Retirement

    Payroll Deductions Pay Off

    Find out how you can bypass or defer taxes on thousands of dollars each year.
  2. The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
    Economics

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  3. Taxes

    Small Business Tax Obligations: Payroll Taxes

    Don't leave it up to your accountant - owners are ultimately responsible for fulfilling tax obligations.
  4. Options & Futures

    The Ins And Outs Of Bank Fees

    These service charges could nickel and dime you right out of your nest egg.
  5. Insurance

    Your First Checking Account

    This owner's manual will show you what to expect from your bank.
  6. Options & Futures

    Choose To Beat The Bank

    From internet banking to credit unions, it's in your power to cut fees and maximize service.
  7. Options & Futures

    401(k) Debit Cards: Taking A Swipe At Your Retirement Savings

    This is just another more convenient way to borrow from your plan. But at what cost?
  8. Savings

    What US banks offer the best savings accounts?

    Explore the best savings accounts offered by national banks comparing annual yield and other factors. Learn why the highest-yield accounts are offered online.
  9. Savings

    What Canadian banks offer the best savings accounts?

    Learn about different savings accounts in Canada. Explore different interest rates and fees as well as accounts that are protected by the CDIC.
  10. Budgeting

    What US banks offer free checking accounts?

    Quit wasting money on monthly fees associated with your checking account and get a free checking account from reputable national banks.

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center