Minimum Balance
Definition of 'Minimum Balance'The minimum dollar amount that a customer must have in an account in order to receive some sort of service, such as keeping the account open or receive interest. There can be more than one minimum balance for the same account. For example, a lower balance may be required to keep the account open, while a higher balance can get fees waived or increase the rate of interest paid into the account. |
|
Investopedia explains 'Minimum Balance'Accounts that fall below the minimum balance may be assessed fees, denied interest payments or closed or penalized in some other fashion. The minimum balance may be an average balance or the actual dollar balance in the account. Different banks measure and enforce the minimum balance in different ways. |
Related Definitions
Articles Of Interest
-
The Evolution Of Banking
Banks are a part of ancient history. Find out how this system of money management developed into what we know today. -
Your First Checking Account
This owner's manual will show you what to expect from your bank. -
Choose To Beat The Bank
From internet banking to credit unions, it's in your power to cut fees and maximize service. -
All About Banking
This tutorial will tell you everything you need to know about how checking and savings accounts work. -
When Good People Write Bad Checks
Overdraft protection can help when you overestimate your balance, but it will cost you. -
A Day In The Life Of A Public Accountant
Here's an inside look at the workdays of two experienced CPAs, to give you an idea of what it might be like to pursue a career as a public accountant. -
Role Of A Market Maker
A market maker is a firm or an individual that stands ready to buy and sell a particular security throughout the trading session to maintain liquidity and a fair and orderly market in that security. ... -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up". -
Decline Of The Independent Broker-Dealer
Since the financial crisis of 2008-2009 the numbers of independent broker-dealers have been steadily declining. Find out why, and if the trend will continue. -
Financial Statement: Extraordinary Vs. Nonrecurring Items
When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ...
Free Annual Reports