What does a floating check refer to?

A floating check refers to a check written with the anticipation of depositing funds into the account before the check is processed and cleared by the bank. This practice relies on timing; the person writing the check hopes to have enough money in the account when the check is cashed or cleared, often by depositing funds that will cover the amount of the check after it is written but before it is presented for payment. This can create a risky situation, as there is no guarantee that the check will be covered by available funds if timing doesn’t align.

In contrast, checks written against closed accounts, post-dated checks, or checks that cannot be processed due to insufficient funds involve different circumstances. A closed account would mean there are no funds available regardless of timing, a post-dated check indicates a future transaction date but doesn't rely on fund availability at the time of writing, and checks returned for non-sufficient funds simply indicate that the account holder didn't have enough money at the time of processing, rather than the timing strategy that floating checks rely upon.