FT MarketWatch

Average daily balance

The Average amount that exists in an Account over a period of time. The number is calculated by adding the daily balances over a period of time and dividing by the total number of days in that period. Used in the Average daily balance method for determining Interest.

Related Terms: 7 Account, Average daily balance, Average daily balance method, Average, Balance, Interest, Term
Other Related Pages: Category: Lending_and_Credit Starting With: A
Additional Related Terms: 30-day wash rule, Account, Account statement, Adjusted balance method, Allowance for depreciation, Average accounting return, Average collection period, Account aggregation, Account balance, Active account