Next-Day Funds


DEFINITION of 'Next-Day Funds'

In banking, money that becomes available for use on the day following the day it is deposited. In investing, next-day funds are available the business day following a trade; however, most trades have used same-day funds settlement since 1996, based on the Group of 30's recommendations for improving settlement and clearance risk, efficiency and cost. Same-day funds are available the day the trade is completed or the day the funds are deposited.

BREAKING DOWN 'Next-Day Funds'

Bank deposits must be cleared and settled before they become available. This involves transferring deposits and withdrawals between banks and ensuring that sufficient funds are available to complete the transactions.

  1. Same-Day Funds

    Money that can be transferred or withdrawn the same day that ...
  2. Group Of 30 - G30

    A consultive group composed of academics and financiers whose ...
  3. Automated Clearing House - ACH

    An electronic funds-transfer system run by the National Automated ...
  4. Deposit

    1. A transaction involving a transfer of funds to another party ...
  5. Continuous Net Settlement - CNS

    An automated book-entry accounting system. CNS centralizes the ...
  6. Clearing

    The procedure by which an organization acts as an intermediary ...
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