1. What Is Monthly Average Balance?

Monthly Average Balance (MAB) is the average of all daily closing balances in a bank account during a calendar month. It is used by banks like HDFC to determine whether account holders meet minimum balance requirements.

2. How Does The Calculator Work?

The calculator uses the MAB formula:

Where:

• \( \sum Daily\ Balances \) — Sum of all daily closing balances (rupees)
• \( Days \) — Number of days in the month (count)

Explanation: The formula calculates the average daily balance maintained in the account over a specific period, typically one month.

3. Importance Of MAB Calculation

Details: MAB is crucial for avoiding penalty charges, maintaining account benefits, and understanding your banking habits. Many banks require customers to maintain a minimum MAB.

4. Using The Calculator

Tips: Enter the total sum of daily balances in rupees and the number of days in the period. Ensure all values are valid (balances > 0, days between 1-31).

5. Frequently Asked Questions (FAQ)

Q1: What Happens If I Don't Maintain Minimum MAB?
A: Banks may charge penalty fees, restrict certain services, or downgrade your account type if minimum MAB requirements are not met.

Q2: How Is MAB Different From Quarterly Average Balance?
A: MAB is calculated monthly, while QAB is calculated over three months. Both serve similar purposes but cover different time periods.

Q3: Do Weekends And Holidays Affect MAB Calculation?
A: Yes, all days including weekends and holidays are counted in MAB calculation as banks consider daily closing balances.

Q4: Can I Improve My MAB During The Month?
A: Yes, maintaining higher balances towards the end of the month can help improve your MAB, but consistent balance maintenance is better.

Q5: What Is The Typical MAB Requirement For HDFC Accounts?
A: MAB requirements vary by account type - typically ranging from ₹10,000 to ₹1,00,000 for different HDFC savings accounts.