average daily balance method


A technique for calculating finance charges (such as in a bank account, charge account, or credit card account) based on average balance that existed each day. Interest charges under this method are usually higher than the adjusted balance method but lower than the previous balance method.

Use this term in a sentence

The average daily balance method was really efficient and I thought it was one of the best techniques out there.

​ Was this Helpful? YES  NO 7 people found this helpful.

You should try and figure out a way to break down the average daily balance method and learn how to improve from it.

​ Was this Helpful? YES  NO 6 people found this helpful.

John Smith decided to cut up his Chase credit card because it charged 18 percent interest using the average daily balance method and he didnt want to spend the next 30 years paying it off.

​ 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
previous balance method past-due balance method