average daily balance


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.

Use this term in a sentence

You should try and come up with a good average daily balance and figure out how to achieve it when you can.

​ Was this Helpful? YES  NO 11 people found this helpful.

George realized because of his extra deposits his average daily balance was higher in the month of April then it was for the month of March.

​ Was this Helpful? YES  NO 8 people found this helpful.

Many bank accounts which afford perks and benefits to depositors require high average daily balances or are subject to monthly mainenance fees.

​ Was this Helpful? YES  NO 2 people found this helpful.

Show more usage examples...

Browse Definitions 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
adjusted balance method credit card