Immediate Credit

Filed Under »
Dictionary Says

Definition of 'Immediate Credit'

The Federal Reserve practice of "clearing" checks deposited by member banks on the same day they're deposited. This service is only available when the Federal Reserve has one of its branches in the same city as the bank wishing to process the check. Normally, checks are subject to "deferred availability" which means the amounts are made available within two days of deposit.
Investopedia Says

Investopedia explains 'Immediate Credit'

The Federal Reserve's policies on immediate credit and deferred availability often have little to do with the actual policies at your local bank. Some banks make funds immediately available on any checks deposited by their customers, some place limits on the amount available, while still others hold all checks over a certain amount. Consumers should be wary of banks that routinely hold checks even when there is no history of bounced checks. This is often a bad sign, in that a bank may be trying to earn a little extra interest off their customers' money. 

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Remittance Float

    The time it ...
  2. Federal Reserve System - FRS

    The central bank ...
  3. Federal Reserve Bank

    The banks that ...
  4. Cashier's Check

    A check written ...
  5. Bounced Check

    A slang word for ...
  6. Certified Check

    A type of check ...
  7. Check Clearing For The 21st Century ...

    A federal law ...
  8. Federal Reserve Board - FRB

    The governing ...
  9. Alan Greenspan

    The former ...
  10. Monetary Policy

    The actions of a ...

Articles Of Interest

  1. The Federal Reserve

    Few organizations can move the market like the Federal Reserve. As an investor, it's important to understand exactly what the Fed does and how it influences the economy.
  2. Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  3. The Evolution Of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  4. Are Your Bank Deposits Insured?

    Learn how the FDIC is helping to keep your money in your pockets.
  5. The Ins And Outs Of Bank Fees

    These service charges could nickel and dime you right out of your nest egg.
  6. Using Economic Capital To Determine Risk

    Discover how banks and financial institutions use economic capital to enhance risk management.
  7. Are all bank accounts insured by the FDIC?

  8. 7 Misconceptions About The Federal Reserve

    There are many fallacies about the Fed. The following misconceptions are among the most popular.
  9. The Link Between The Fed, Money, Debt And Taxes

    Assets on the Fed's balance sheet, money supply level, national debt level and economic production should be maintained in equilibrium.
  10. A Primer On Inflation

    Inflation has a negative connotation, but is it all bad or does it offer some tangible benefits?

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center