What Is an Account Balance?

By Alicia Tuovila
Updated August 17, 2024
Reviewed by
Somer Anderson
Somer G. Anderson
Reviewed by Somer Anderson
Full Bio
​Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas.
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Part of the Series
Guide to Checking Accounts
Types of Checking Accounts
  1. What Is a Checking Account? Here's Everything You Need To Know
  2. 6 Different Checking Accounts
  3. Joint Checking Account
Checking Account Basics
  1. Account Balance
    CURRENT ARTICLE
  2. Non-Sufficient Funds
  3. Routing Transit Number
  4. Overdraft Protection
  5. Overdraft Protection: Pros and Cons
  6. Overdraft Consequences
Opening a Checking Account
  1. The Documents You Need
  2. Pros and Cons of Checking Accounts
  3. Checking Account Beneficiaries
Paying With Checks
  1. What is a Check?
  2. Bounced Check
  3. Do Checks Expire?
  4. How to Write a Check
Using a Debit Card
  1. Debit Cards
  2. Keeping Transactions Safe
  3. Prepaid Debit Card Precautions
Best Checking Accounts
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  2. Best Rewards Checking Accounts
  3. Best High-Interest Checking Accounts

What Is an Account Balance?

An account balance is the amount of money at a specific time in a financial repository, such as a savings or checking account. The account balance factors in all debits and credits. An account balance is also shown on billing statements for credit cards, utilities, and loans.

Key Takeaways

  • An account balance represents the current value of a financial account, such as a checking, savings, or investment account.
  • Financial institutions provide account balances on paper statements and online.
  • For investments in brokerage accounts, an account balance can change daily as security prices rise and fall in the market.

Calculating Account Balances

An account balance reflects total assets minus total liabilities. In banking, the account balance is the money available in a checking or savings account. The account balance is the net amount available after all deposits and credits have been balanced with any charges or debits.

For investments in brokerage accounts, an account balance can change daily as security prices rise and fall in the market. Other accounts have an account balance, such as a utility bill or a mortgage loan. The account balance for these accounts shows the amount owed.

A bank account balance can be inaccurate if a check has yet to clear the bank or a pending transaction has not yet gone through.

Examples of Account Balances

As an example, for a credit card, various purchases may be posted for amounts including $100, $50, and $25, and a returned item that costs $10. The account balance includes the purchases, which in this case total $175, and the item returned for $10. The net of the debits and credits is $165, or $175 minus $10, which is the account balance.

For a checking account, if the starting balance is $500, and a check for $1,500 is received, but an automatic payment is scheduled for $750, the account balance might show $2,000 immediately, but the actual account balance is $1,250.

Account Balance vs. Available Credit

For credit cards, account balances represent the total amount of debt owed at the start of the statement date and include any debt rolled over from previous months with interest charges. Available credit is the term used alongside the account balance to indicate how much of the credit line is left to spend.

How Can Individuals Check a Bank Account Balance?

Account holders can check balances by signing in to their bank's app or website and looking at their latest transactions or by visiting the local branch and speaking with a representative.

What Kinds of Accounts Have Account Balances?

Checking, savings, and brokerage accounts all have account balances. However, expenses like utility bills, mortgage loans, or credit cards also have account balances.

What's Available Credit?

Available credit refers to the amount remaining on the credit line. The available credit can be determined by subtracting the account balance from the credit limit.

Can You Withdraw Your Bank Account Balance?

Yes, because your bank account balance shows you how much money you have available in your account. The money is there for you withdraw or leave in the account, possibly to earn interest payments on it.

The Bottom Line

An account balance represents the available funds in a financial account, such as a checking, savings, or investment account. An account balance in a brokerage account can change daily as security prices rise and fall in the market. A bank account balance can be inaccurate if pending transactions exist but haven't yet posted, or been recorded.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. AccountingTools. "Account Balance Definition."

  2. Bank of America. "Managing Your Investment Account."

Part of the Series
Guide to Checking Accounts
Types of Checking Accounts
  1. What Is a Checking Account? Here's Everything You Need To Know
  2. 6 Different Checking Accounts
  3. Joint Checking Account
Checking Account Basics
  1. Account Balance
    CURRENT ARTICLE
  2. Non-Sufficient Funds
  3. Routing Transit Number
  4. Overdraft Protection
  5. Overdraft Protection: Pros and Cons
  6. Overdraft Consequences
Opening a Checking Account
  1. The Documents You Need
  2. Pros and Cons of Checking Accounts
  3. Checking Account Beneficiaries
Paying With Checks
  1. What is a Check?
  2. Bounced Check
  3. Do Checks Expire?
  4. How to Write a Check
Using a Debit Card
  1. Debit Cards
  2. Keeping Transactions Safe
  3. Prepaid Debit Card Precautions
Best Checking Accounts
  1. Best Checking Accounts for Teens
  2. Best Rewards Checking Accounts
  3. Best High-Interest Checking Accounts
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