What is a running balance?

A running balance is a financial term that refers to the total amount of money in a bank account or other financial account at a given point in time. The running balance is calculated by adding deposits and deducting withdrawals and fees from the initial balance of the account.

Bank statements often include a running balance column to help account holders keep track of their transactions and monitor their account activity. This can be particularly helpful for budgeting and ensuring that there are enough funds in the account to cover upcoming expenses.

Having a running balance allows account holders to see their current account balance after each transaction, making it easier to track spending and avoid overdrafts. It can also help identify any unauthorized transactions or errors in the account.

Overall, a running balance is a useful tool for managing finances and staying on top of your account activity.