What is average balance in bank account

An average balance in a bank account is the mathematical average of the daily closing balances maintained over a specific period, typically a month or quarter. In India, this is commonly referred to as the Monthly Average Balance (MAB). To calculate it, the closing balances of each day in the month are added together and then divided by the total number of days in that month. Maintaining the required MAB specified by your bank is essential to avoid non-maintenance charges and ensures the continued availability of various banking features and services.