Average Monthly Balance Calculator Canara Bank

AMB Formula:

\[ AMB = \frac{\sum Daily\ Balances}{Days\ in\ Month} \]

AMB ($):

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1. What is Average Monthly Balance?

The Average Monthly Balance (AMB) is the average of all daily closing balances in a bank account during a calendar month. Canara Bank requires customers to maintain a minimum AMB to avoid penalties and enjoy banking services without additional charges.

2. How Does the Calculator Work?

The calculator uses the AMB formula:

\[ AMB = \frac{\sum Daily\ Balances}{Days\ in\ Month} \]

Where:

$ \sum Daily\ Balances $ — Sum of all daily closing balances in the month
$ Days\ in\ Month $ — Number of days in the calendar month (28-31 days)

Explanation: The formula calculates the simple average of daily account balances over the entire month, providing the monthly average balance required by Canara Bank.

3. Importance of AMB Calculation

Details: Maintaining the required AMB is crucial for Canara Bank customers to avoid non-maintenance charges, ensure uninterrupted banking services, and qualify for various account benefits and privileges.

4. Using the Calculator

Tips: Enter the total sum of daily balances in dollars and the number of days in the month. Ensure values are valid (daily balances > 0, days between 28-31).

5. Frequently Asked Questions (FAQ)

Q1: What happens if I don't maintain the minimum AMB?
A: Canara Bank may charge a non-maintenance fee, which varies based on the account type and the extent of shortfall in the required balance.

Q2: How is AMB different from minimum balance?
A: AMB is the average of daily balances over a month, while minimum balance is the lowest amount that must be maintained at all times. AMB requirements are typically more flexible.

Q3: Does Canara Bank have different AMB requirements for different accounts?
A: Yes, AMB requirements vary by account type (savings, current, premium accounts) and location (metro, urban, semi-urban, rural areas).

Q4: Are weekends and holidays included in AMB calculation?
A: Yes, all calendar days in the month are included in AMB calculation, including weekends and bank holidays.

Q5: Can I check my AMB online?
A: Yes, Canara Bank customers can check their AMB through internet banking, mobile banking, or by visiting the nearest branch.