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!
07/01/14 4,000.00 1 15 -14 -56,000.00
07/15/14 12,000.00 15 20 -5 -60,000.00
07/20/14 8,000.00 20 28 -8 -64,000.00
07/28/14 15,000.00 28 28 0 –
07/28/14 10,000.00 28 30 -2 -20,000.00
07/31/14 6,000.00 30 31 -1 -6,000.00
-206,000.00
07/01/14 4,000.00 1 15 -14 -56,000.00
07/15/14 12,000.00 15 20 -5 -60,000.00
07/20/14 8,000.00 20 28 -8 -64,000.00
07/28/14 15,000.00 28 28 0 –
07/28/14 10,000.00 28 30 -2 – 20,000.00
07/31/14 6,000.00 30 31 -1 -6,000.00
-206,000.00
Hi, the elapsed days from 28th to 30th should only be 2 (2 x 10,000) as the transaction for the 30th is assumed to be done beg. day. on the 30th. As a result total should be 206,000 of MADB of 6,866.67 pesos.
If you’ll sum the days you use on your calc (14+5+8+3+1) this will be 31 days already for June which only have 30 days.
Hello Nora, I would like to ask, i just opened my acc this month June 2023 and due to some emergency I have to withdraw 3k (my maintaining bal is 10k i have the passbook) and I will deposit the money back next week (June 24, 2023). I would like to know how much should i deposit? should i deposit 3k only or do i need to deposit higher? if i need to deposit higher, how much should i deposit? Sorry for too much question its my first time using atm.
Hi Jen, I can compute it if you tell me the exact date you opened your account. Anyway, you can deposit back any amount that you’re able to deposit back this month of June. The more important thing is next month, July, you should have 10k pesos everyday from July 1 to July 31. This means you’re able to maintain your account the month of July. And then maintain again the month of August. Your account will be good. You’re charged the 300-peso penalty only if you don’t maintain your account for 2 consecutive months. Consecutive. 2 months. So even if you’re not able to maintain for one month, it’s okay — just be sure to maintain it the next month. Huwag lang magkasunod na hindi maintained.