Ano ang Minimum Monthly Average Daily Balance?

4.13.2012

Ano ang Maintaining Balance sa Bank Account?

Bakit meron tayong bawas na 200 o 300 pesos na penalty for NOT maintaining the Minimum Monthly Average Daily Balance for 2 consecutive months? (o dalawang magkasunod na buwan?)

Ano ba itong Minimum Monthly Average Daily Balance or Minimum MADB? or yong sinasabi nilang Maintaining Balance?

Ang Maintaining Balance ay yong pinakamababang balance na dapat nasa savings account o checking account natin araw-araw para hindi tayo mabawasan ng penalty.  Merong penalty... kasi gusto ng bank na merong enough na pera sa bank account natin at nang sa ganon ay meron silang pakinabang sa pag-handle ng bank account natin.

Ang pag-check ng bank kung below maintaining balance ang account natin ay hindi everyday kundi every month. Kino-compute nila ang average ng 30 or 31 daily balances sa loob ng isang buwan, kaya tinawag na Monthly Average Daily Balance.

Example: Ang savings account ko ay merong balance na 2,000 pesos. Ang required Maintaining Balance o Minimum MADB ng savings account na ito ay 2,000 pesos. Winidrohan ko ng 500 pesos, at 1,500 na lang ang naiwan -- mababawasan ba ang account ko ng 200 o 300 pesos na penalty?

Puedeng Yes, puedeng No.

Kung mapabayaan na 1,500 pesos lang ang balance ng account ng 2 months, mababawasan ang account ng 200 o 300 pesos na penalty sa end of the 2nd month.

Pero, kung madepositohan uli ang account para maging 2,000 pesos ang resulta ng pag-compute ng average daily balance at the end of the month, walang penalty.

Halimbawa sa 30 days of the month, merong:
5 days na 2k ang balance
20 days na 1k ang balance
5 days na 3k ang balance

5 days x 2k = 10k
20 days x 1k = 20k
5 days x 3k = 15k
10k plus 20k plus 15k = 45k
45k divided by 30 days = 1,500 pesos

Ang monthly average daily balance ng account is 1,500 pesos. Ito ay below the minimum MADB na 2k. Kung sa susunod na buwan ay ganito pa rin na below the minimum MADB, mababawasan na ng penalty.

Halimbawa namang ganito:
5 days na 2k ang balance = 10k
10 days na 1k ang balance = 15k
16 days na 3k ang balance = 48k
10k plus 15k plus 48k =  73k
73k divided by 31 days = 2,354.84

Ang MADB ng account is 2,354.84. Ito ay above the required maintaining balance na 2k, so okay itong account. Na-maintain ang required Minimum Monthly Average Daily Balance.

Ano ang Maintaining Balance sa Bank Account?

22 comments:

Anonymous said...

i have a newly opened bpi atm direct account for 15 days now i think, the maintaining balance is 3k, im planning to withraw 1k tomorrow and deposit more than 1k by 2-3 days. will i incure any penalty? thanks.

Nors said...

Hi Anonymous, not yet. You'll incur a penalty at the end of the 2nd consecutive month you fall below the maintaining balance requirement. 3k is the maintaining balance? And you had 3k in your account for the past 15 days? So that means you're ok for Feb since your account is newly opened. Yes, maintain more than 3k after you withdraw 1k so that on March 31, the average daily balance would be 3k or higher. You try adding the daily balances and then divide by the no. of days.

Anonymous said...

thanks for that Nors very informative. i have another question, do the counting of days start regulary on a monthly basis or does it start on the day my account was activated?

Nors said...

Hi Anonymous, bank systems check maintaining balances immediately after every 30th or 31st. They check daily balances from the first day of the month to the last day of the month. The penalty is imposed immediately after the 2nd consecutive month that you fall below the maintaining balance requirement.

Anonymous said...

hi. I opened my passbook account noong Jan. 18, 2013. Currently (March 11, 2013) ang balance ko ay P10k. ang maintaining balance requirement ay 1k. ma-pepenaltyhan ba ako kasi hindi ako nakadeposit since last Feb. 18? or ano ang suggested na amount ko na i.dedeposit para di ako ma-penaltyhan? thanks.

Nors said...

No, you will have no penalty because you have 10k in your account, far above the maintaining balance requirement. You are not penalized if you don't deposit in a month or in 2 months or more, as long as your lack of deposit does not exceed 2 years. An account becomes dormant if you do not deposit or withdraw within 2 years.

Anonymous said...

salamat po sa mga information

Anonymous said...

hello po may savings account po ako sa BDO ar may maintaining balance na 2000 what if na withraw ko ito lahat tapos hindi na po ako nakapag deposit for a months ano po mangyayari mag closed na po ba ito?

Nors said...

About BDO maintaining balance: Kapag 0.00 na ang balance, automatic mag-close na. Kapag meron pang natirang cents or few pesos, mag-close siya at the end of the 2nd consecutive month na wala kang naideposit or below required maintaining balance. If merong konting balance at 1 month lang below-required-balance, at sa 2nd month ay 2k or above na ang average daily balance, walang penalty, at active account pa siya.

Anonymous said...

is it legal for banks to have 2 different and separate MADBs for their active and dormant accounts ? for example, their MADB for active accounts is pegged at 5,000.00 while their dormant accounts' MADB is pegged at 10,000.00 ?

Nors said...

About MADBs: Sorry I'm not a lawyer, so you should not rely on my response. But this is my first time to hear about different MADBs for dormant and active. I think you can question them if they insist on applying that rule to you, when they did not disclose that rule to all clients -- that rule should have been disclosed in their passbook, or brochures or any written communication to new clients...
The BSP ruling on MADBs emphasizes the need for disclosure of rules to all clients before implementing such rules...I think there's even a part that says that the client should be notified via a letter to the client's last known address if the account is nearing dormancy or has started to be dormant....

Anonymous said...

Hi, I would like to ask for the service charge/penalty of MADB for deposit account if the balance is below maintain balance for one(1) year. Thank you.

Nora said...

About below-maintaining-balance penalty: That would be 11 months x 300 pesos = 3,300 pesos
So it's better to close an account if one cannot maintain the monthly average daily balance. There are accounts that have low or zero maintaining balance requirements

Anonymous said...

Thank You for the reply. I thought it will automatically closed when it becomes zero balance. I'm just confused from these fees"PHP300 – monthly service charge for falling below the required average daily balance (ADB) for 2 consecutive months". Am I misunderstanding that it will charge me P300 for 2 consecutive months if below ADB or it will charge P300/month for falling below maintain balance. OMG! how can I pay and closed it, I should pay the charges first before closing the account. OMG! I'm unemployed for almost a year. Is there any ways to stop the continuous charge/penalty. Thanks in advanced. You're really helpful. Ms. Nora

Nora said...

No, no, no, don't pay the penalties if the balance is already zero for too long! No! Forget this account. The bank will not go after you. When you get employed again, or receive some money later on, open another account in another bank or another branch.
I answered your question that way because of how you asked your question. I thought you have a balance of 3k or 5k or more...because you asked for 1 year! For example, your account fell below maintaining-balance for 2 consecutive months, 300 will be deducted at the end of the 2nd month. If it's still below maintaining balance the 3rd month and there's still a balance, another 300 will be deducted. If after this 2nd deduction, your account becomes negative or zero, your account will automatically close. If you left your account with zero balance for many months already, forget this account.

Anonymous said...

Thank You GOD & to YOU. So you're telling me to just ignore any contacts & letters from staff/personnel of the bank. I'm feel worried about being arrested for these situation that's why I'm browsing some issues like this thru internet. By the way, Is it possible that they will file complaints regards to it and arrest me. I also ask my friend working in a bank for this situation. Anyways, hope will not be arrested for this and that I'm worried about that's why I'm too eager to find what to do and what will happen... I'm sorry for the inconvenience Ma'am Nora, you're a life saver for sharing and answering my questions. THANK YOU SO MUCH AND GOD BLESS....

Nora said...

God bless you too.
No, the bank will not pursue you, will not file a charge against you, and will not have you arrested. What for? What's the charge? What's your crime? None. It's not a crime to open a bank account and leave it with a balance below the minimum balance requirement or leave it with a zero balance or negative balance. Sa totoo lang, maraming-marami ang nako-close na account due to zero balance or negative balance. Meron na rin akong hinayaang na-close na bank accounts for different reasons, and I didn't close them formally.
Meron din kasing cost ang mag-maintain ng account na wala namang laman, so these accounts are automatically closed. Sometimes, some banks write just to inform na iko-close na nila ang account, pero hanggang doon lang yon, at bihira ito, additional cost pa nila.
So, feel relaxed na, and keep praying for another job, a better job.

Anonymous said...

I'm almost felt relaxation but last question Ma'am, they've said about "Account will be dormant effective november 2013 and service charge is continuous" if I'm going to calculate this in the next another 2yrs from additional past 2 yrs total of 4yrs for example, the charge/penalty would be almost 15k pesos. My last question here is does Automatically closing of bank accounts is applied or implemented to all Banks in the Philippines. I'm not saying I'll do it to my succeeding bank accounts. I'm sorry for all these questions. Thank you & God Bless. I'm praying on having another better job. Your help is very much appreciated.

Nora said...

I got really curious about your case -- that they sent you that letter -- so I searched the 2 Pinoy forums that I sometimes visit, and I found one similar case to yours. It was with Metrobank. Is yours also Metrobank?
This one closed his account, and then after 2 years he got a letter from Metrobank telling him to fix his dormant account or else the charges continue accumulating. He called the hotline, and he was instructed to visit the Metro Mla branch in person, even if he was far away in the province. When he arrived at the branch, the teller told him to disregard the letter! Unbelievable! The thread was in 2009 though.
I went on through the other forum threads, and the bankers there generally said the same thing -- that accounts automatically close after they zero out, and that there's no law broken if these accounts are not closed in person.
I have an inkling that Metrobank's automatic account closure or automatic dormancy and below-maintaining notification system has a bug or defect, so it sends out these letters even to those with negative balances or to those whose accounts should have been closed months or years before. Banks are required by the BSP to send out notifications for accounts that are about to get dormant.
If you like to see these comments, just type on google search tab this: close account site:pinoyexchange.com and you can see several search results
This can be a good topic for an article when I have time... :)

Anonymous said...

Yes its Metrobank, I'm browsing also other information with regards with these situation. I also look for the BSP law if the bank can file complaints against me if I will not visit the bank and closed my account. But I notice something written on the letter like "Visit us and reactivate your account." so the first thing comes in my mind is that they just wanted me to come then pay for the penalties for reactivation of the account but for almost 2yrs I didn't use the ATM card and I expect that It was automatically closed due to I left it below 100 pesos so the deduction will occur until it becomes zero balance. I also ask my friend working in a different bank and says that it will close automatically even if I left a positive balance it will deduct until it turns negative and zero balance. Thank you for your time, I appreciate it Mam. God Bless Always.

Anonymous said...

Question :

What if po I am planning to withdraw on the day of 30 and 31 considered po ba ito na may penalty ?

Nora said...

About withdrawing on the 30th and 31st: You can withdraw anytime, as long as you can maintain your monthly average daily balance (MADB) requirement for 2 consecutive months. Kung hindi mo man ma-maintain ang MADB this Dec 2013, make sure na ma-maintain mo this Jan 2014 para hindi magkasunod na below-MADB. Merong penalty kapag magkasunod na buwan na below MADB. Ang penalty ay nababawas sa end of the 2nd consecutive month na below MADB at every month na up to the time na naibalik mo sa above MADB

THANK YOU VERY MUCH FOR YOUR COMMENTS.

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