Most banks in India offer savings and current account for their customers, based on certain conditions. There will be a specific charge for opening an account, and a quarterly average balance that should be maintained to keep the account working. Banks usually impose a service charge on all customers, those who fail to meet the QAB demands. The quarterly average balance is an importance factor that determines the eligibility of the user for insurance, credit card and bank loans. So here is a method to calculate the calculate quarterly average balance (QAB) of an account based on one example.
Why there is AQB charges appearing in my savings account statement
Banks deduct a specific amount from user accounts for not maintaining a quarterly average balance requirement. For e.g.: AQB SER CHGS INC ST & CESS in a HDFC bank statement against 820/-RS indicates that you have failed to maintain the limits.
QAB Charges, Q1-Q3+Serv Tax77 DR INR 827.00 : This is a particular example for AQB charge levied on ICICI statement.
The above shown screenshot, we can see HDFC Bank charging customer for not maintaining average quarterly balance.
How to calculate average quarterly balance
The classification of savings bank account of certain banks is based on quarterly average balance. Those who are ready to maintain the higher amount can opt for premium savings accounts with free debit cards and better interest rates. HDFC, ICICI and a few other banks provide priority banking facilities to people who maintain quarterly average balance of a definite level( around 1-10 lakhs). Banks consider the QAB track to analyze the financial capability of a customer while processing, home and personal loans. So calculate your quarterly average balance now to plan the future requirements.
Jan 1-Jan 10 : 15000
Jan11-Jan 31: 10000
Feb1-Feb 12 : 26000
Feb12- Feb 28 : 4000
Mar1- Mar 15 : 50000
Mar16- Mar 31 : 200
QOB= (((15000*10)+ (10000*21)+( 26000*12)+ (4000*16)+ (50000*15)+ (200*16))/ (31+28+31)) = 31546.66
So, quarterly average balance of any bank account can be calculated by summing the end of day balance for each day in a full quarter, divided by the number of days in that quarter.
This method can be used to calculate quarterly average balance (aqb) for HDFC, ICICI, SBI, SBT, AXIS, Union, BOB, PNB, SIB and other banks.