Funds that are freely available.
What Are Cleared Funds?
Cleared funds are the cash balances in an account that can be immediately withdrawn or used in financial transactions. Until funds are considered cleared funds, they are deemed to be pending, and investors or customers will be unable to conduct transactions with them.
"Cleared funds" refers to funds that have been deposited into a bank and are fungible, meaning they can be utilized for transactions, vs. funds that are pending or awaiting clearance.
This situation occurs whenever banks only clear a portion of deposited funds to capture the overnight interest rate float on balance until a deposited check or an incoming transfer holding period is completed. (see: Check Hold).
The banks want your float. Bottom line. Any excuse to hold your money another day so they can make money on it. So sue them.