Ano ang Monthly Average Daily Balance (MADB) or Maintaining Balance in Bank Accounts?

Updated May 9, 2024

Ano nga ba ang Average Daily Balance o Maintaining Balance?

Bakit merong penalty of 300 pesos or more every month kapag hindi na-maintain ang maintaining balance na nire-require ng bank sa dalawang magkasunod na buwan or for 2 consecutive months?

Ang Maintaining Balance ay yong amount of money na dapat laging nasa bank account para tuluy-tuloy lang ang account na walang penalty. Nire-require ng banks ito para meron silang consuelo sa pagme-maintain ng bank transactions and bank records.

Madalas, tinatawag din ang Maintaining Balance na Minimum Monthly Average Daily Balance (MADB),

kasi ang Maintaining Balance is the Minimum Average Daily Balance na dapat meron tayo sa ating savings account or checking account every month para walang penalty.

Why is there a Maintaining Balance requirement?

The banks say they spend money to handle our accounts and maintain our bank records, so they must make some profit from our accounts, and therefore, according to them, we should maintain a certain minimum amount of money in our accounts.

The banks check our balances, not everyday, but every last business day of the month. They compute the average balance per day for 30 days or 31 days of the month — that’s why it’s called Monthly Average Daily Balance (MADB).

They consider the end-of-day balance. If our balance in the morning is 10,000 pesos, and at the end of the day, our balance is 15,000 pesos, they consider 15,000 pesos.

If the required Maintaining Balance is 2,000 pesos, do we need to have 2,000 pesos in our account everyday?

Yes, so that we don’t have to think about maintaining balances.  ðŸ™‚ Hindi na tayo mag-compute-compute ng average.

Pero puede namang hindi everyday. We can have less than 2,000 pesos in our accounts some days, as long as we deposit much more than 2,000 pesos in other days, so that when the MADB is computed on the last business day of the month, the MADB comes out to be 2,000 pesos or more.

Example:
Your savings account has a balance of 2,000 pesos.
The required MADB  is 2,000 pesos.
The penalty for falling below MADB for 2 consecutive months is 300 pesos.
One day, you withdrew 500 pesos, resulting in a balance of 1,500 pesos.
Will your balance be reduced by the 300-peso penalty?

Can be Yes, can be No.

If your balance remains 1,500 pesos over 2 consecutive months, your balance will be reduced by the 300-peso penalty at the end of the 2nd month.

But if you deposited high amounts of money in other days, so that your MADB at the end of the month is 2,000 pesos or more, then your account will not be penalized.

Or even if you fell below MADB for the first month, but you reached your required MADB on the second month, you will not get the penalty. Kasi one month ka lang hindi naka-comply sa balance requirement. Meron lang penalty kapag dalawang magkasunod na buwan na hindi mo na-maintain ang account mo.

Ilang Beses Mag-Charge ang Bank ng Maintaining Balance Penalty?

Isang beses sa isang buwan. On the last business day of the month. Magsi-simula ang charging sa 2nd consecutive month na hindi mo na-maintain ang account mo. At magcha-charge uli sa following month kapag hindi mo pa rin na-maintain. At kapag hindi mo pa rin maibalik sa maintaining-balance level, tuluy-tuloy na ang charging hanggang maubos ang laman ng account mo at mag-automatic close na.

Again, what is MADB?

It stands for Monthly Average Daily Balance. Yong Average Daily Balance mo sa Month na tinitingnan kung na-maintain mo ang account mo sa month na yan.

How to Compute Monthly Average Daily Balance (MADB)

This is how to compute monthly average daily balance (MADB).

If your Monthly average daily balance is equal or higher than your required maintaining balance, then your account is good.

So you don’t have to worry about the maintaining balance requirement, deposit the required maintaining balance, then leave it there in your account — do not touch it. Use only the amounts above your maintaining balance.

But in case you withdraw more than what you should, deposit higher amounts over the next days so your Monthly Average Daily Balance (MADB) will still be equal or higher than your Maintaining Balance Requirement.

This is how to compute your Monthly Average Daily Balance (MADB):

For example, this is your account record for the month:

DateTransactionDebitCreditBalance
6/1/20xx4,000
6/15/20xxATM cash deposit8,00012,000
6/20/20xxATM withdrawal4,0008,000
6/28/20xxOTC cash deposit7,00015,000
6/28/20xxonline bill payment5,00010,000
6/30/20xxATM withdrawal4,0006,000

FIRST, add your daily balances from the first day of the month to the last day of the month.

From 1st day to 14th day, your daily balance was 4,000 pesos.
4,000 pesos x 14 days = 56,000 pesos

From 15th day to 19th day, your daily balance was 12,000 pesos
12,000 pesos x 5 days = 60,000 pesos

From 20th day to 27th day, your daily balance was 8,000 pesos
8,000 pesos x 8 days = 64,000 pesos

From 28th day to 30th day, your daily balance was 10,000 pesos
10,000 pesos x 3 days = 30,000 pesos

On the 30th day, your balance was 6,000 pesos
6,000 pesos x 1 day = 6,000 pesos

The total of your daily balances for the month is:
   56,000 pesos
   60,000 pesos
   64,000 pesos
   30,000 pesos
     6,000 pesos
——————–
 216,000 pesos

SECOND, divide the TOTAL by the number of days of the month.

216,000 pesos / 30 days =  7,200 pesos

Your MADB is 7,200 pesos

Your MADB or Maintaining Balance Requirement is 5,000 pesos.

Obviously, 7,200 is higher than your 5,000-peso maintaining-balance requirement, so you have maintained your bank account for the month.

Is there a Philippine law regarding maintaining balance in bank accounts?

There is. It’s in the Manual of Regulations for Banks (MORB), the implementing rules and regulations of the General Banking Law of 2000 and other banking laws.

These are the rules:

  1. The minimum MADB and the amount or rate of maintenance fee should be disclosed to the client in the Terms and Conditions of Deposit
  2. The maintenance fee is charged only if the account has fallen below the required MADB for at least 2 consecutive months.
  3. If there is any change in the minimum MADB, clients must be notified at least 60 days before the change is implemented. Means of notification are described in the MORB.
  4. One of the qualifying grounds for the charging of Dormancy Fee is that the account has fallen below the required MADB.

Gusto mo ba ng Bank Account na Walang Maintaining Balance?

Meron na ngayon mga Digital Savings Accounts na walang initial deposit at walang maintaining balance. Just prepare your main valid ID, then download the mobile app from Google Play or Apple Store. —->>> Digital Banks in the Philippines

Peso Savings Accounts for OFWs, Usually Zero or Low Maintaining Balance

US Dollar Accounts with Low Maintaining Balance Requirement

Checking Accounts with Low Maintaining Balance Requirement

Peso Savings Accounts with Low Maintaining Balance Requirement

Another example of Monthly Average Daily Balance (MADB) computation

They add the end-of-day balances for all the days of the month,
and then divide the TOTAL by the number of days of the month
(divided by 30 or 31 or 28 or 29).

Example: April has 30 days:
For the first 5 days of the month, your balance everyday was 2k.
then for the next 20 days, your balance everyday was 1k
and for the last 5 days, your balance everyday was 3k

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

Your MADB is 1,500 pesos

Obviously, that’s below the 2k minimum MADB.
If for the next month, your MADB is still below 2k, then your account balance will be reduced by 300 pesos.

Another example: March has 31 days
First 5 days, balance everyday is 2k = 10k
Next 10 days, balance everyday is 1k  = 15k
Next 16 days, balance everyday is 3k = 48k
10k plus 15k plus 48k =  73k
73k divided by 31 days = 2,354.84

Your MADB is 2,354.84.

That’s above the 2k required MADB. That means you have maintained your account, so there will be NO penalty.
And that means you are on your way to saving a LOT of MONEY if you continue to deposit and NOT withdraw.

Holidays or Saturdays/Sundays at the end of the month:
If the last days of the month are holidays, or Saturdays and Sundays, the bank computes the MADB on the last banking day before the holidays, Saturdays or Sundays.
For example, April 29  is a Saturday and April 30 is a Sunday, the bank computes the MADB on Friday, April 28.

372 Comments

  1. Nora Tamba 09/10/2015
    • Rommel Santos 10/18/2016
      • Glaiza castro 11/22/2020
        • Nora 11/22/2020
          • ra 12/21/2020
          • Nora 12/29/2020
    • cresanta taburnal 02/10/2020
      • Nora 02/10/2020
        • zyra 03/28/2021
          • Nora 04/30/2021
        • Ericka 04/30/2021
  2. Anonymous 10/06/2015
    • Nora Tamba 10/12/2015
    • Bob 09/01/2016
    • Anonymous 04/03/2018
    • Heldian 03/08/2020
      • Nora 03/08/2020
  3. Derline Perez 10/12/2015
    • Nora Tamba 10/12/2015
      • sonia t. delos sabtos 03/10/2019
        • Nora 03/10/2019
          • Myla valde 08/15/2023
          • Nora 08/15/2023
    • Anonymous 05/30/2017
  4. Derline Perez 10/12/2015
    • Nora Tamba 10/12/2015
    • Aileen Jasmin 04/22/2019
      • Nora 04/24/2019
  5. Nora Tamba 10/12/2015
  6. Anonymous 10/12/2015
  7. Nora Tamba 10/12/2015
  8. Anonymous 10/14/2015
    • Nora Tamba 10/15/2015
    • Unknown 12/03/2016
      • Cloud Sky 10/14/2019
        • Nora 10/14/2019
          • Honey Grace 12/04/2019
          • Nora 12/04/2019
    • Anonymous 06/21/2017
  9. Anonymous 10/21/2015
    • Nora Tamba 10/21/2015
  10. Anonymous 10/22/2015
  11. Nora Tamba 10/22/2015
    • Anonymous 10/27/2015
  12. Anonymous 10/29/2015
    • Nora Tamba 10/31/2015
    • Nora Tamba 10/31/2015
  13. Anonymous 10/31/2015
    • Nora Tamba 10/31/2015
    • Cherry Te 08/29/2016
  14. Unknown 10/31/2015
    • Nora Tamba 10/31/2015
      • Genelyn sapiera 10/26/2020
        • Nora 10/26/2020
    • Anonymous 11/01/2015
  15. Anonymous 11/04/2015
  16. Nora Tamba 11/04/2015
    • Yaz 05/06/2023
      • Nora 06/18/2023
  17. Yana 11/11/2015
  18. Nora Tamba 11/12/2015
  19. lexreyes 11/12/2015
  20. Nora Tamba 11/12/2015
  21. Issa 11/14/2015
  22. marknilo294 11/14/2015
  23. Nora Tamba 11/15/2015
  24. Nora Tamba 11/15/2015
  25. Anonymous 11/28/2015
  26. Nora Tamba 11/29/2015
  27. Nora Tamba 11/30/2015
  28. Anonymous 12/03/2015
  29. Nora Tamba 12/03/2015
  30. Anonymous 12/06/2015
  31. Anonymous 12/14/2015
    • Nora Tamba 12/14/2015
  32. Nora Tamba 12/14/2015
  33. Anonymous 12/16/2015
  34. Ferose Mendez 12/26/2015
  35. Random VideosPh 12/31/2015
  36. Bella 01/13/2016
    • Nora Tamba 01/31/2016
  37. Unknown 01/15/2016
  38. Jozseff Jozseff 01/15/2016
  39. Unknown 01/27/2016
    • Nora Tamba 01/31/2016
    • Coco 08/17/2017
  40. Anonymous 02/04/2016
    • Nora Tamba 02/11/2016
  41. mylove ramatz 02/10/2016
    • Nora Tamba 02/10/2016
    • Nora Tamba 02/10/2016
    • Mary Joy Soriano 08/27/2017
  42. Unknown 02/12/2016
  43. Nora Tamba 02/12/2016
  44. Unknown 02/22/2016
    • Nora Tamba 02/22/2016
    • Nora Tamba 02/22/2016
  45. 1wayjesus777 02/28/2016
    • Nora Tamba 02/28/2016
    • 1wayjesus777 02/28/2016
  46. Anonymous 03/01/2016
  47. Nora Tamba 03/01/2016
  48. Nora Tamba 03/25/2016
  49. EL A 04/03/2016
  50. Nora Tamba 04/04/2016
    • Racel marie flores* 10/05/2019
      • Nora 10/06/2019
  51. Anonymous 04/26/2016
  52. Nora Tamba 04/27/2016
  53. Anonymous 04/30/2016
  54. Nora Tamba 04/30/2016
  55. Unknown 04/30/2016
    • Nora Tamba 04/30/2016
  56. Anonymous 05/02/2016
  57. Ryan Tugas 05/03/2016
  58. Nora Tamba 05/03/2016
  59. Nora Tamba 05/03/2016
  60. Nora Tamba 05/03/2016
  61. Anonymous 05/16/2016
  62. Nora Tamba 05/17/2016
  63. FlyHigh 05/17/2016
    • Nora Tamba 05/17/2016
  64. Anonymous 05/23/2016
  65. Nora Tamba 05/23/2016
  66. Dio Mondejar 06/02/2016
    • Nora Tamba 06/02/2016
  67. Kary Halifax 06/08/2016
    • Nora Tamba 06/08/2016
  68. Anonymous 06/17/2016
  69. Chris Pineda 06/19/2016
    • Nora Tamba 06/20/2016
  70. SYETEPIE 06/23/2016
  71. Nora Tamba 06/23/2016
    • SYETEPIE 06/23/2016
  72. Nora Tamba 06/23/2016
  73. SYETEPIE 06/24/2016
  74. Anonymous 06/29/2016
  75. Anonymous 06/29/2016
    • Nora Tamba 07/02/2016
  76. Nora Tamba 06/29/2016
    • Anonymous 06/29/2016
    • Nora Tamba 06/30/2016
  77. Nora Tamba 06/29/2016
  78. Anonymous Inquiry 07/02/2016
    • Nora Tamba 07/02/2016
    • Anonymous Inquiry 07/06/2016
  79. Norman Dungca 07/04/2016
    • Nora Tamba 07/05/2016
    • Norman Dungca 07/07/2016
    • Nora Tamba 07/09/2016
  80. Anonymous 07/04/2016
  81. NA 07/11/2016
    • Nora Tamba 07/12/2016
    • NA 07/15/2016
    • Nora Tamba 07/23/2016
  82. Francis Opigal 07/14/2016
    • Nora Tamba 07/23/2016
  83. Francis Opigal 07/25/2016
  84. Ken Lafuente 08/06/2016
    • Nora Tamba 08/07/2016
  85. Anonymous 08/07/2016
    • Nora Tamba 08/07/2016
  86. John anthony Visbal 08/16/2016
    • Nora Tamba 08/16/2016
  87. girley 08/22/2016
    • Nora Tamba 08/29/2016
  88. Nora Tamba 08/29/2016
  89. girley 08/29/2016
  90. Nora Tamba 09/02/2016
  91. Nora Tamba 09/02/2016
  92. ellimac ramirez 09/03/2016
  93. Nora Tamba 09/03/2016
  94. Lorenz Santos 09/07/2016
    • Lorenz Santos 09/07/2016
    • Nora Tamba 09/08/2016
    • Lorenz Santos 09/08/2016
    • Nora Tamba 09/08/2016
  95. Jellyace 09/08/2016
    • Nora Tamba 09/11/2016
  96. abbygielle 09/10/2016
    • Nora Tamba 09/11/2016
  97. ShanShan 09/13/2016
    • Nora Tamba 09/13/2016
    • ShanShan 09/13/2016
    • Nora Tamba 09/13/2016
    • Nora Tamba 09/13/2016
  98. JunO 09/16/2016
    • Nora Tamba 09/17/2016
    • JunO 09/17/2016
    • Nora Tamba 10/03/2016
  99. Prev Fernandez 10/03/2016
    • Nora Tamba 10/03/2016
  100. Jellyace 10/03/2016
    • Nora Tamba 10/04/2016
    • Jellyace 10/05/2016
    • Nora Tamba 10/05/2016
    • Nora Tamba 10/05/2016
    • Jellyace 10/05/2016
  101. Nora Tamba 10/18/2016
    • Rommel Santos 10/28/2016
    • Nora Tamba 11/02/2016
    • Rommel Santos 11/02/2016
    • Nora Tamba 11/02/2016
  102. Unknown 11/02/2016
    • Nora Tamba 11/02/2016
    • JV 11/02/2016
    • Nora Tamba 11/02/2016
    • JV 11/03/2016
  103. ryan de mesa 11/02/2016
    • Nora Tamba 11/03/2016
    • ryan de mesa 11/03/2016
    • Nora Tamba 11/03/2016
    • ryan de mesa 11/03/2016
    • Nora Tamba 11/10/2016
  104. Nelson llanes 11/10/2016
    • Nelson llanes 11/10/2016
    • Nora Tamba 11/10/2016
    • Nelson llanes 11/10/2016
    • Nelson llanes 11/10/2016
  105. Nelson llanes 11/10/2016
  106. Nora Tamba 11/10/2016
  107. Nelson llanes 11/11/2016
  108. Nelson llanes 11/11/2016
    • Nelson llanes 11/11/2016
  109. Nelson llanes 11/11/2016
    • Nora Tamba 11/11/2016
    • Nora Tamba 11/11/2016
    • Nora Tamba 11/11/2016
    • Nelson llanes 11/12/2016
  110. Nora Tamba 11/12/2016
    • Nelson llanes 11/12/2016
    • Nora Tamba 11/13/2016
    • Nora Tamba 04/08/2017
  111. Charmaine Rodriguez 11/13/2016
    • Nora Tamba 11/13/2016
  112. Anonymous 12/01/2016
    • Nora Tamba 12/01/2016
  113. Juan Paulo Balais 12/04/2016
  114. Unknown 12/12/2016
  115. MaeMae 12/12/2016
    • Mai 05/31/2020
      • Nora 05/31/2020
  116. Rachel Ann Pacio 12/22/2016
  117. almond Cabrera 12/27/2016
  118. Chris 01/12/2017
  119. Anonymous 01/17/2017
  120. Alj Gallenero 01/17/2017
  121. Dennis Bolotaolo 02/13/2017
  122. Dennis Bolotaolo 02/13/2017
    • Nora Tamba 02/17/2017
  123. Jenny 02/17/2017
    • Nora Tamba 02/17/2017
  124. Anonymous 02/22/2017
    • Nora Tamba 02/22/2017
  125. Alj Gallenero 02/23/2017
    • Nora Tamba 02/24/2017
    • Alj Gallenero 02/24/2017
  126. Joeferson Alabastro 03/06/2017
    • Nora Tamba 03/07/2017
    • Nora Tamba 03/07/2017
    • Joeferson Alabastro 03/07/2017
  127. jhie nohlove 03/27/2017
    • Nora Tamba 03/27/2017
  128. Nora Tamba 03/27/2017
    • jhie nohlove 03/28/2017
    • jhie nohlove 03/28/2017
  129. Ella T. 03/29/2017
    • Nora Tamba 03/29/2017
    • Ella T. 03/29/2017
  130. jhie nohlove 03/30/2017
    • Nora Tamba 03/30/2017
  131. Unknown 04/07/2017
  132. Francisco Lising 04/08/2017
  133. Nathan 04/08/2017
  134. Melodie Lania 05/13/2017
  135. Anonymous 05/24/2017
  136. Anonymous 06/03/2017
    • Nora Tamba 06/04/2017
  137. Anonymous 06/07/2017
    • Nora Tamba 06/07/2017
  138. Anonymous 06/15/2017
  139. Anonymous 06/29/2017
  140. Unknown 07/19/2017
  141. Anonymous 08/07/2017
  142. Coco 08/17/2017
  143. Anonymous 08/18/2017
  144. Anonymous 08/25/2017
  145. Mary Joy Soriano 08/27/2017
    • Mary Joy Soriano 08/27/2017
  146. Anonymous 09/24/2017
  147. Unknown 11/03/2017
  148. Anonymous 11/11/2017
  149. Anning 11/15/2017
  150. Anonymous 12/19/2017
  151. Anonymous 12/21/2017
  152. Anonymous 02/05/2018
  153. Nora Tamba 02/05/2018
  154. Dennis Bolotaolo 04/18/2018
    • Nora Tamba 05/05/2018
  155. Cherry 05/05/2018
  156. Nora Tamba 05/05/2018
  157. Ronin Oliquino 05/12/2018
    • Nora Tamba 05/13/2018
  158. Aika 05/13/2018
  159. Aika 05/13/2018
    • Nora Tamba 05/13/2018
  160. Anonymous 05/27/2018
  161. Rico Tamayo 07/29/2018
  162. Anonymous 07/29/2018
  163. Unknown 10/06/2018
  164. Unknown 11/09/2018
  165. Monica Kuan 12/04/2018
    • sophia 12/04/2018
  166. Marie Cruz 02/20/2019
  167. Liberty 03/03/2019
    • Nora 03/03/2019
  168. Maria 03/22/2019
    • Nora 03/22/2019
      • Maria 03/22/2019
  169. Elle 03/23/2019
    • Nora 03/23/2019
  170. Mark 03/28/2019
    • Nora 03/29/2019
  171. Brejeda Sale 08/27/2019
    • Nora 08/29/2019
  172. Laurence Joy 08/29/2019
    • Nora 08/29/2019
  173. Rey 09/26/2019
    • Nora 09/26/2019
  174. Rey 09/26/2019
  175. Nik 11/15/2019
    • Nora 11/16/2019
  176. Yen 03/05/2020
    • Nora 03/08/2020
  177. Yen 03/09/2020
    • Nora 03/09/2020
  178. ARCEL 03/29/2020
    • Nora 03/30/2020
  179. Jev 10/04/2020
    • Nora 10/04/2020
      • Jev 10/04/2020
  180. Dianne 11/11/2020
    • Nora 11/11/2020
  181. Noodles 12/29/2020
    • Nora 12/29/2020
  182. Marianne Ventura 01/03/2021
    • Nora 01/21/2021
  183. Anonymous 01/21/2021
    • Nora 01/21/2021
  184. gigi 02/11/2021
    • Nora 02/11/2021
  185. Angel Mina 02/20/2021
    • Nora 02/23/2021
  186. Ericka 04/30/2021
    • Nora 04/30/2021
  187. Kay 07/25/2021
    • Nora 07/25/2021
      • Kay 07/26/2021
        • Nora 08/09/2021
  188. Raf 08/09/2021
    • Nora 08/09/2021
  189. Rogel Amalin 08/26/2021
    • Nora 08/26/2021
  190. aiza alegarme 10/01/2021
    • Nora 10/01/2021
  191. Kay 03/26/2022
    • Nora 03/26/2022
  192. Kim 06/08/2022
    • Nora 06/08/2022

Leave a Reply