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Average daily balance method

A technique for calculating Finance charges (such as in a bank Account, charge Account, or Credit card account) based on Average balance that existed each day. Interest charges under this method are usually higher than the Adjusted balance method but lower than the previous Balance method.

Related Terms: 18 Account, Adjusted balance method, ACH, Average, Balance, Base, Charge, Credit card, Car, Credit, Finance, Finance charge, FIN, High, Interest, Low, Owe, Previous balance method
Other Related Pages: Category: Lending_and_Credit Starting With: A
Semi Related Terms: 443 CLICK HERE TO VIEW
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