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:
|
Date
|
Transaction
|
Debit
|
Credit
|
Balance
|
|
6/01/2020
|
4,000
|
|||
|
6/15/2020
|
ATM Cash Deposit
|
8,000
|
12,000
|
|
|
6/20/2020
|
ATM Withdrawal
|
4,000
|
8,000
|
|
|
6/28/2020
|
OTC Cash Deposit
|
7,000
|
15,000
|
|
|
6/28/2020
|
Online Bill Payment
|
5,000
|
10,000
|
|
|
6/30/2020
|
ATM Withdrawal
|
4,000
|
6,000
|
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
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.
total is not 189,000.. i have added 216,000 instead
Hello, thank you for taking the time to check my computation and to write me about it. Wow! Thank you. You're correct, the total should be 216,000, and not 189,000. I will correct it asap. Thank you again!