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Average Monthly Balance Formula:
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The Average Monthly Balance (AMB) is the average of daily closing balances in a bank account during a calendar month. HDFC Bank uses this calculation to determine if account holders meet minimum balance requirements and avoid penalties.
The calculator uses the AMB formula:
Where:
Explanation: The equation calculates the simple average of daily account balances over the entire month, providing a standardized measure of account usage.
Details: Maintaining the required AMB is crucial for HDFC account holders to avoid non-maintenance charges, enjoy free banking services, and maintain account benefits. Different account types have different AMB requirements.
Tips: Enter the total sum of daily balances in currency units and the number of days in the month. Ensure values are positive and days are between 1-31.
Q1: What happens if I don't maintain minimum AMB?
A: HDFC Bank charges non-maintenance fees ranging from ₹100 to ₹1,500 depending on your account type and the shortfall amount.
Q2: How is AMB different from minimum balance?
A: AMB is the average of daily balances, while minimum balance refers to the lowest amount that must be maintained at any point. AMB requirements are typically more flexible.
Q3: Does HDFC offer zero-balance accounts?
A: Yes, HDFC offers Basic Savings Bank Deposit Accounts (BSBDA) that have zero balance requirements, but with limited transaction facilities.
Q4: How can I check my AMB with HDFC?
A: You can check through net banking, mobile banking, or by visiting your branch. Monthly statements also show your AMB calculation.
Q5: Are weekends and holidays included in AMB calculation?
A: Yes, AMB includes all days of the month including weekends and bank holidays. The balance on these days is considered the same as the previous working day.