immediate credit


A situation when a check deposited at the Federal Reserve Bank receives "same day funds" i.e. the funds are immediately available to the recipient. This only happens in cities with their own Reserve Bank however, and the normal waiting period for most deposited checks is two days of "deferred availability". Banks will also usually give immediate credit for checks when drawn against accounts in that same branch.

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
immediate beneficiary subject to collection