What is cash float?

Question

What is cash float?

Answer

When you write a check, you are presumed to have that amount of money sitting in the bank to pay the check. So the money is not yours, and the payee has not yet claimed it, and it doesn't belong to the bank. That is "float".

Answer

Cash float is the term for the total amount of checks in between the time when the check is written and taken off the books of the payer, but not out of their bank account, and before it's in the back account of the payee, even though they already would have recorded it in their books.

What is cash float?

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