If interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example checks)---is the the collected balance?

I'm getting confused on the two. Thanks.

That is the collected balance.

Ledger balance is what is in the account after the deposit. Collected balance considers the float.

So to continue the conversation--if the bank chooses to accrue interest on the first business day after the day of deposit OR no later than the business day we receive credit for the item then the bank is using the Collected Balance. Is this correct? Thanks.

The day you receive credit is using the collected balance. Using this option, you are not paying interest on the days the money is not collected from the FED.

Do you have accounts that pay interest from the first business day AFTER the day of deposit?

Yes, we do have accounts that accrue interest the first business day after the day of depost which would equal 1 day of float---is this still considered the collected balance?

Collected means the bank has received payment for the item...it has been collected. If it hasn't cleared yet, it is uncollected.

We are working on this issue too. I see that I can rely on an FRB availability schedule as my guide to determine when we receive credit for our deposits, so I'm looking at the Check Deposit Availability Schedule. (Is this correct?) And I see a term on the schedule that I can't define ~ what is the "deposit deadline date?"

Also...How are other bank's handling this?