average daily balance

Definition
The average amount that exists in an account over a period of time. The number is calculated by adding the daily balances over a period of time and dividing by the total number of days in that period. Used in the average daily balance method for determining interest.




average daily balance is ...
... part of the
Banking and Lending & Credit subjects.


Related Terms

credit card -  More
adjusted balance method -  More
previous balance method -  More
average equity


average daily balance appears in the definitions of these other terms on BusinessDictionary.com

Loading...





Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z