InvestorQ : What is a bank’s quarterly average balance?
Anjali Desai made post

What is a bank’s quarterly average balance?

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Anushri Vasa answered.
3 years ago
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Every bank requires its customers to maintain a particular average balance in their savings accounts. The duration of this average balance calculation can be either monthly or quarterly.

This average balance varies across banks and some banks look at quarterly average balance instead of the monthly average balance.

If a customer doesn’t comply with the monthly average balance (MAB) rules, then he/she will be charged a penalty.

Savings account holders are required to maintain a monthly average balance - which is the average of daily closing balances in a bank account - to the tune of Rs. 1,000-10,000. Please note the average balance requirement varies from one bank to another.

The minimum balance requirement and the penalty charges vary depending on the location of bank branch and degree of shortfall in account balance.

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