Hello, @melissaramosn.
Thank you for posting here in the Community space. I can share some insights about Undeposited Funds. It is an internal other current asset account created by QuickBooks to hold funds until you are ready to deposit them. It serves as the default Deposit To account when you receive payments, uses a payment item on an invoice, or enter a sales receipt.
Once you have enough funds from your undeposited funds, here's when a bank deposit comes in. You'll now have to transfer all your income from your undeposited funds to your bank account.
To learn more about Undeposited Funds and it work flow, you can check out this article: How to Use the Undeposited Funds Account to Receive Payments in QuickBooks Online.
In addition, here's an article you can read to learn more about undeposited funds in QuickBooks Online: What’s the Undeposited Funds account?
Please let me know if you have any other questions about your QuickBooks. It'll be always my pleasure to help. Take care!