Investopedia

Continue to Site »

Noncash Item

Filed Under » ,
Dictionary Says

Definition of 'Noncash Item'

1. A check or other negotiable item, such as a draft, deposited into a customer's account but not credited to the account until it clears the issuer's account.

2. An income item on a business's financial statement (e.g., donation, capital depreciation, investment gains or losses) that does not affect its cash flow.
Investopedia Says

Investopedia explains 'Noncash Item'

Banks will often put a hold of up to several days on a large noncash item, such as a check for several thousand dollars, depending on the customer's account history and what is known about the payor (e.g., if the issuing organization has the financial collateral to cover the check presented). The short period of time during which both banks have the funds available to them (between when the check is presented and the money is withdrawn from the payor's account) is called the float.

Articles Of Interest

  1.

    Credit, Debit And Charge: Sizing Up The Cards In Your Wallet

    Not all plastic is equal! Learn the difference between the three kinds, and how each can affect your finances.

  2. Are Your Bank Deposits Insured?

    Learn how the FDIC is helping to keep your money in your pockets.

  3. The Ins And Outs Of Bank Fees

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

  4. Your First Checking Account

    This owner's manual will show you what to expect from your bank.

  5. Choose To Beat The Bank

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

  6. Online Banks: Lower Costs And Little Sacrifice

    For many, online banking has become a day-to-day routine. Still, there are some holdouts who refuse to accept the method.

  7. Bag The Best Bank Account

    Take advantage of the deals banks offer, and find the right account for your financial situation.

  8. Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.

  9. The History Of The FDIC

    Find out why this corporation was developed and how it protects depositors from bank failure.

  10. Cut Your Bank Fees

    Find out how to get the bank to pay you for using their services, not the other way around.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center