Clearing House Funds

Clearing house funds refer to the money that is being transferred between banks via instruments such as checks or drafts. These funds are processed and moved through systems managed by a clearing house, such as the Federal Reserve in the United States. The term highlights the process of how these funds are handled from the moment a check is issued until the final settlement.

Clearing house funds are a fundamental component of the banking industry, facilitating the movement of money through secure channels and providing a backbone for the financial transactions that fuel the economy.