How Average monthly balance is calculated?

[Swapnil Gund]

I'm using IDFC savings account which should have minimum average monthly balance of Rs 10,000.
I'm not aware of how is this calculated. For two times amount has been deducted for not maintaining the balance, because of this I am not using this account. Can anyone suggest solution for this issue.

 

[mr_official]

I'm using IDFC savings account which should have minimum average monthly balance of Rs 10,000.
I'm not aware of how is this calculated. For two times amount has been deducted for not maintaining the balance, because of this I am not using this account. Can anyone suggest solution for this issue.

The closing day balances for a 31-day month are totalled, and the sum is divided by 31 to get the average.

 

[17ysaurabh]

The things one needs to know about the minimum average monthly balance:

1. If the minimum average monthly balance is Rs. 10k, then it does not mean you have to keep Rs. 10k every day in your account.
2. The minimum average monthly balance is calculated by adding the balance in your account every day of the month divided by the total number of days.

Example:
Day 1: 50k
Day 2: 30k
...
Day 29: 11k
Day 30: 5k

Minimum average monthly balance = (50k + 30k +...+11k + 5k) / 30 = > 10k

 

[rohan]

YES