Average Quarterly Balance (AQB) is the average balance to be maintained in the account over a period of a quarter.
It is the sum of the end of day balance in the account for each day in the quarter, divided by the number of days in the quarter.
Example:
Say if your account is subjected to maintain an AQB of Rs. 10,000 /-, that means the
EOD balance x Number of Days
AQB = 10,000 = ————————————————
Number of days in Quarter
Let’s assume the number of days in Quarter are 90 (30days for 3 months),
Also, assume you maintained same EOD balance through out the quarter, thus your AQB becomes
AQB = 10,000 = EOD balance constantly maintained through out the quarter
so, you at least need to maintain a minimum of Rs. 10,000 at any time during the quarter.
Say, withdraw all of your money and left your account in zero balance for 10 days, you can still avoid your AQB charges by maintaining balance that is worth of 10,000 x 10 = 1,00,000 for at least one day within the quarter.
A more detailed calculation example is below:
| Sample statement to illustrate example | |||||
| Sr. No. | Date | Narrarion | Withdrawal | Deposit | Closing balance |
| 1 | 1-Jan-07 | Credit interest capilized | 50 | 4,000 | |
| 2 | 10-Jan-07 | ECS Credit-PKT | 10,000 | 14,000 | |
| 3 | 16-Jan-07 | Cash Withdrawal | 2,000 | 12,000 | |
| 4 | 25-Jan-07 | Cheque Deposit- MICR clearing | 13,000 | 25,000 | |
| 5 | 5-Feb-07 | Broadway automobile POS 43860000000012 | 1,000 | 24,000 | |
| 6 | 19-Feb-07 | Cash Deposit Mumbai | 9,000 | 33,000 | |
| 7 | 26-Feb-07 | Funds Transfer | 29,000 | 4,000 | |
| 8 | 2-Mar-07 | Cheque paid-MICR inward clearing | 1,500 | 2,500 | |
| 9 | 15-Mar-07 | Cheque Deposit- MICR clearing | 25,000 | 27,500 | |
| 10 | 31-Mar-07 | Cash Withdrawal | 2,000 | 25,500 | |
| AQB Calculation | |||
| Sr. No. | Time Period | Calculation | Amount(Rs) |
| 1 | EOD Balance from 01-Jan-07 to 9-Jan-07 | 4,000 x 9 | 36,000 |
| 2 | EOD Balance from 10-Jan-07 to 15-Jan-07 | 14,000 x 6 | 84,000 |
| 3 | EOD Balance from 16-Jan-07 to 24-Jan-07 | 12,000 x 9 | 1,08,000 |
| 4 | EOD Balance from 25-Jan-07 to 04-Feb-07 | 25,000 x 11 | 2,75,000 |
| 5 | EOD Balance from 05-Feb-07 to 18-Feb-07 | 24,000 x 14 | 3,36,000 |
| 6 | EOD Balance from 19-Feb-07 to 25-Feb-07 | 33,000 x 7 | 2,31,000 |
| 7 | EOD Balance from 26-Feb-07 to 01-Mar-07 | 4,000 x 4 | 16,000 |
| 8 | EOD Balance from 02-Mar-07 to 14-Mar-07 | 2,500 x 13 | 32,500 |
| 9 | EOD Balance from 15-Mar-07 to 30-Mar-07 | 27,500 x 16 | 4,40,000 |
| 10 | EOD Balance on 31-Mar-07 | 25,500 x 1 | 25,500 |
| Total EOD balances for the quarter Jan-Mar-07 | 15,84,000 | ||
| Divide by the no. of days in the quarter | 90 | ||
| Average Quarterly Balance (AQB) | 17,600 | ||
Average Quarterly Balance (AQB) Excel Calculator.
7 thoughts on “How is Average Quarterly Balance (AQB) calculated”
nice explanation
Thanks a lot for this useful information…
thank you — now its clear
Very easily explained. Thanks.
I am glad you found it helpful and easy to understand.
how is the average quarterly balance calculated when an customer opens an account in the middle of quarter? is the quarterly balance calculated for that quarter? if yes what is the number of days being considered?
I open an accuunt in the middel of the first quarter and my ccount activate after 35 days then bank charged QAB. so what i can this position.