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

Additional Related Terms: 10-Q, 10-K, 52-week high, 52-week low, 30-day wash rule, Account, Account statement, Adjusted balance method, Adjusted basis, Allowance for depreciation