average daily balance (ADB) definition

average daily balance (ADB)

Amount used by banks to compute interest on deposit balances, and finance charges on credit card balances. For deposit accounts, ADB is equal to the total of balances in a month divided by the days in that month. For credit cards, it is total of the opening balance of the day less withdrawals (or purchases) plus any charges, divided by the number of days in that billing period.

average daily balance (ADB) is in the Banking, Commerce & Finance and Investing subjects.

average daily balance (ADB) appears in the definition of the following term: account analysis

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