Uncollected Funds Definition Uses Banking Insights

837 reads · Last updated: February 3, 2026

The term "uncollected funds" refers to a portion of a check deposit that remains unavailable to the accountholder who made the deposit until the bank verifies that the funds associated with the deposit have been received by the depositor's bank.Once the deposited check has cleared the banking system, the funds are deemed to have been collected. At that point, they become part of the accountholder's available balance.

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