In banking, the minimum daily balance is the minimum balance a banking institution needs to have an account holder in their account on a daily basis to waive maintenance costs. This is not to be confused with the average daily balance, which is calculated as the daily balance amount in the billing period divided by the number of days.
This is how a checking account balance is measured. Your balance may drop below the required amount anytime as long as you meet the balance requirements at the end of the business day (usually at 5 pm). For example: Joan has a checking account with "minimum daily balance of $ 500." One day he made a purchase that lowered his balance to $ 200 but then deposited a $ 400 salary before the end of the day. The bank will not charge the service because its last balance of the day is $ 600.
Source of the article : Wikipedia
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