Banks avg daily balance - how to calculate?

[Babyt]

I am still confused since the day the banks implemented this scheme. if balance is less than $500, there will be a charge of $2.

 

How do banks define avg daily balance? using nov 2009 as example, is it (30 days of flutuating daily balance / 30 days) = avg daily balance?

 

Can give some example?

 

[Ithunk]

yes if yr account less than 500 they deduct 2 dollars

[Redboy]

yes if yr account less than 500 they deduct 2 dollars

 

 

I suppose if your account on one day drops below $500, but on another day, it goes beyond $500, they will not deduct, will they?

 

I holding a UOB savings account. Last month, the balance dips below $500. But once salary is credited into it on another day of this same month, they didn't deduct.

 

wondering how they calculate?

[Ithunk]

then u must find out when they normally do the deduction

[Kusje]

500$ per day * number of days (30) = $15,000.

 

If your total daily balance in a month is more than 15k, then you will not be charged the service charge. Ithunk doesn't know what he is talking about.

[Ah_cow]

summation of day 1 balance to day 30 balance / 30 days

 

if amount lesser than 500 then will deduct

 

if i am not wrong...

Edited December 12, 2009 by Ah_cow

[Babyt]

OIC...thanks all.

 

Edited December 12, 2009 by Babyt

[Acevin]

I think they have a formula to work the balance. I ever receive bank statement and there are some formula worked out, not so straightforward.

Edited December 12, 2009 by Acevin

[Ladykillerz]

lesson learnt..~

end of the day, if there is any chance that you will have < $500, just cease the bank account..~

[Babyt]

the reason i m asking is because my posb account is there with less than 1k money. it is there in case i cant find UOB atm to withdraw and also gov will pay watever they give me like bonus to my posb account.

 

 

 

 

[Ladykillerz]

another good way is to fix min. $1000, anything less, don't withdraw.~