Minimum Average Balance to Avoid Fees
Definition
- The balance in the account from day-to-day must average this amount when calculated. If the account balance falls below this amount, the account holder is subject to the monthly charge and/or per usage transaction charges.
Synonyms
bank fees, surcharge clause, fine print
Alternate Spellings
Minimum Balance, Minimum Balance to Avoid Fees
Related Terms and Acronyms
- ATM Access Fee — Definition,
- Fee charged in addition to the individual account fees for an account holder to gain access to the ATM system. Can be monthly, weekly, or annual fee. See also "Automated Teller Machine."
- Closed-account Fee — Definition,
- A fee charged for shutting down an account. Sometimes charged if the account is closed before a certain time period has passed.
- Minimum Monthly Balance — Definition,
- The least amount of money in a bank account during an entire month.
- Number of Free Transactions per Month — Definition,
- The number of transactions an account holder is allowed to make before being charged a fee. If the limit is exceeded, a per-item charge is applied. Some accounts offer an unlimited number of free transactions or no free transactions per month.
- Per Item Charge — Definition,
- A fee charged to account holders who exceed the allowable number of free transactions for their accounts. Or, the balance in an account does not meet the average monthly balance required to waive the fee.
- Service Charge (SC) — Acronym,
- Fees charged to customers for specific services or as a penalty for not meeting certain requirements such as insufficient funds in a chequing account.
➥ Bank account transaction code.
