The process whereby a bank or similar financial institution sets aside/ appropriates an amount of money for a specific use or purpose. A bank may earmark funds for its own purposes or at request of customers for their own purposes in application to their funds or accounts held by the bank.

Earmarked money is money restricted by a bank in relation to a customer’s balance balance for a specific purpose as per the customer’s request or any other order (e.g., by relevant authorities as a means to withhold an income tax). Although earmarked funds will be shown in a customer’s bank account but it cannot be withdrawn until the banks lift such a restriction.

In specific contexts, earmarking may also be known as ringfencing (ring-fencing).