We like to keep your banking simple. Still, there's a lot going on behind-the-scenes with every transaction you make. And as a World's Most Ethical Company, we want you to be armed with as much knowledge as possible about what's happening with your money. We don't ever want you to feel like you aren't "in the loop."
We hope you'll read through all the information about your account, including our Deposit Account Agreement and Disclosure (commonly referred to as the DAAD), but we know that's a lot to digest. So here's some information about our Funds Availability--broken down--to help you understand everything you need to know about what funds are available to you and when...and why, too.
First things first: Available vs Current Balance
Here's an important fact you may not realize--and it's true for most banks, not just Old National: The banking transactions for your checking account actually happen at the end of the day. Deposits, withdrawals, debit-card payments--they're all pending in your account (this is also known as "memo posting") until the evening. That's when they are officially processed and the money goes into and out of your account.
That's why you'll notice two different balances if you look in Online or Mobile Banking--a Current Balance and an Available Balance.
Your Current Balance is your balance from the previous evening's processing. (So if you check it during the day, you'll see the balance that was reached last night, after all the previous day's transactions have been accounted for--or "posted," in banking terms.)
Your Available Balance starts with the Current Balance and takes into account all those pending transactions happening throughout the day. It's basically "unofficially" keeping track of all your deposits, withdrawals, purchases, etc.
But, when they are actually processed in the evening, things may be a little different.
What happens during evening processing (aka "Posting Order")
All of those individual transactions are accumulating throughout the day. Then, at the end of the day, they are grouped together by type of transaction before they are processed. (This likely will be different than the order they occurred during the day.)
So we gather all your deposits from the day and officially add those "available" funds to your account. Then we gather all the debits and withdrawals, and subtract them from your account, starting with the highest dollar amount and working down to the smallest.
(Let's pause here to note that the reason we do highest-to-smallest is to ensure higher-dollar items like mortgage or car payments, which tend to be more important and more likely to affect your credit score, happen first. This is one reason you always need to make sure you have enough money in your account to cover all your withdrawals and checks you have written. Not having enough money in your account could cause items to be returned and not paid, and the highest-to-lowest order could cause several of your smaller-dollar items to be returned, not just one larger item. This can lead to overdraft issues, too.)
The good news is that we're a "credit-first" organization here at Old National, which means the "available" funds from your daily deposits are added to your account before money is taken out for checks and withdrawals. So even though you bought some groceries with your debit card in the morning, then transferred money from your savings account at noon, the deposited transfer money will actually be there first during the end-of-day processing. Check out our more detailed DAAD document for a table that outlines the processing order.
Starting to make some sense? OK, so let's talk about when the money you deposit is available for you to use.
We all have deadlines in our lives. Deadlines for work projects, deadlines to sign up your kids for soccer, deadlines for taking advantage of on-sale items. There are deadlines for deposits, too, and these are called "cutoff" times. It's the latest time of the day you can make a deposit for it to be considered for that evening's processing.
In most situations, the cutoff times for our banking centers--when you would physically hand an Old National associate your deposit--is the banking center's daily closing time. The cutoff time for deposits made at ATMs can vary from location to location, and can be as early as noon in some places, so feel free to ask an associate if you need to know.
Mobile deposits (the ones you make remotely using the Old National app on your phone) have a cutoff time of 8pm CT.
Anything submitted before the cutoff time is considered for that evening's processing. Anything after the cutoff time will be considered for the next business day's processing (in the evening).
But wait, there's more....
Type of deposited item matters, too
Even though you make a deposit before the cutoff time, there are other aspects to consider before you know when it will be available for you to use. Some deposited items won't be available until the following day, even if you make the cutoff time.
Check the DAAD for specifics about this, but the items that have same-day availability and will be available that evening (assuming you make the deposit before the daily cutoff time) typically include:
• electronic direct deposits (e.g. payroll direct deposit)
• wire transfers
• checks that are from another Old National account
Other items are considered to have next-day availability. That means it takes a little more time before the funds become available for you to use, but generally speaking, they should be available the morning of the next business day (assuming you make the cutoff time for the current day). These usually include:
• Checks from accounts at other banks
• U.S. Treasury checks that are payable to you
• State and local government checks that are payable to you
• Cashier’s, certified, and teller’s checks that are payable to you
• Federal Reserve Bank checks, Federal Home Loan Bank checks and postal money orders, if these items are payable to you
And don't forget about the day of the week
Remember, not every day of the week is a business day. Generally, business days are Monday through Friday, and those are the days when we do nightly processing. So if you make a deposit on any of those days, your funds will be available by the following day. If you make a deposit on a Saturday or Sunday, it will have to wait until Monday evening's processing, and will be available by Tuesday. (Holidays are one exception to this and can add an extra day to the processing time.)
Exceptions to the rules
As with every rule, there are some exceptions that cause longer delays. These scenarios can be found in the DAAD and include depositing checks totaling more than $5,525 on any one day, redepositing a check that has been returned unpaid, or overdrawing your account repeatedly in the last six months. We also may delay your availability to your deposited funds if we believe a check you deposit will not be paid.
Why is all this information important?
Because all of these items are continually affecting your account's available balance. Knowing how it all works can ensure you don't get hit with overdraft charges by letting your available balance dip into negative numbers.
As always, if you have any questions about your account or your Funds Availability, visit one of our nearby Old National banking centers, where an associate will be glad to help.
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