minimum balance

Definition

The minimum amount a bank or other financial institution requires a customer to maintain in his or her account. The institution can set a minimum balance level for any of its accounts, and this amount will vary by institution. Usually, if the required minimum balance is not maintained, the customer is charged various fees for failing to meet the requirements.

Use minimum balance in a sentence

If you just keep paying the minimum balance on your credit cards, it's going to take you years to pay them off.

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The minimum balance was too much for us to handle and we had to take all of our money out and find somewhere new.

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I currently have a checking account that waives my monthly fee as long as I maintain a minimum balance of $1000; I was charged a $20 monthly fee in February when my account balance fell to $995.

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