Monthly Average Balance (MAB), also known as the minimum average balance is nothing but the minimum amount you are required to maintain in your Savings Account every month.
The figure is calculated at the end of each month and failure to maintain this minimum average balance will result in penalties.
How is Monthly Average Balance calculated?
The monthly average balance is calculated by taking the average of the end of day/ daily closing balances in your Savings Account, in a given month.
For a 31-day month, the average is calculated by adding the closing day balances for all the days in the month and dividing it by 31.
Here is a quick formula to help you remember it:
MAB = (Sum of Monthly Average Balance amount which is your bank limit and number of days in the month )/( Available Balance in your bank account )
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