Some many moons ago, my sister was disgruntled. She told me that she had gone to an ATM and got a withdrawal slip that confused her. There were two different amounts on that slip, one said “Current balance” and the other said “Available balance”. She asked if I knew what the difference was and at that stage, I legit, had no clue.
I never took an interest in this until recently when I have been living out of the country. Because I tend to swipe a lot, my transactions do not get processed immediately. When I swipe, the bank blocks that money, so that I cannot spend it twice while the processing goes through. This can take up to 24 workings hours.
So what is the difference?
Current balance: This is how much is in your account, including money you have already spent but has not yet been processed.
Available: This is what is available for you to spend. This will excludes money that you have already spent even if the bank has not allocated it. This is what you should be looking at if you want to know how rich or broke you are.
This is one the few things that are on our statements that we do not bother with. But how often do you look at your statement? Do you understand what is a transaction fee, monthly management fee, stamp duties and others?
You should be looking at your statement at least once a week for any unusual transactions that maybe processed on your account. In addition, there are schemes out there such as N$99 schemes were people deduct such amounts on your account because some banks do not send notifications for amounts below N$100. So, how will ever find this if you do not look at your bank statement?
When last did you look at your bank statement? I dare you to.