1. What is Average Monthly Balance?

The Average Monthly Balance (AMB) is the average amount of money maintained in a bank account over a specific period, typically one month. Axis Bank and other financial institutions use AMB to determine account maintenance fees and eligibility for various banking services.

2. How Does the Calculator Work?

The calculator uses the AMB formula:

Where:

• \( \sum Daily\ Balances \) — Sum of all daily account balances for the period
• \( Days \) — Number of days in the calculation period
• \( AMB \) — Average Monthly Balance in currency

Explanation: The formula calculates the arithmetic mean of daily account balances over a specified period to determine the average balance maintained.

3. Importance of AMB Calculation

Details: Maintaining the required AMB is crucial for avoiding penalty charges, accessing premium banking services, and ensuring account compliance with bank regulations. Axis Bank sets specific AMB requirements for different account types.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What happens if I don't maintain the required AMB?
A: Axis Bank may charge non-maintenance fees or penalty charges if your account falls below the required AMB for your account type.

Q2: How is AMB different from minimum balance?
A: AMB is the average balance over a period, while minimum balance is the lowest amount that must be maintained at any given time.

Q3: What are typical AMB requirements for Axis Bank accounts?
A: AMB requirements vary by account type, ranging from zero balance accounts to premium accounts requiring higher balances.

Q4: How can I improve my AMB?
A: You can improve your AMB by maintaining consistent balances, timing large transactions carefully, or upgrading to an account with lower AMB requirements.

Q5: Does AMB calculation include weekends and holidays?
A: Yes, AMB calculation includes all calendar days in the specified period, including weekends and bank holidays.