average daily balance

USAGE SUMMARY

The phrase "average daily balance" is correct and usable in written English.
It is typically used in financial contexts to refer to the average amount of money in an account over a specific period, often used for calculating interest or fees. Example: "The bank calculates interest based on the average daily balance of your account over the month."

✓ Grammatically correct

News & Media

Wiki

Science

Human-verified examples from authoritative sources

Exact Expressions

27 human-written examples

As is often the case, finance charges on Ms. Anderson's account are calculated on the average daily balance, so to save some interest she wanted to pay as early in each billing cycle as she could.

The New York Times

Even if you pay just $1 less than the statement balance, you will be charged interest on the average daily balance during the entire billing period.

Forbes

It's not "the cheapest" — the website's FAQ says it charges an annual fee of 0.50percentt of an��account's average daily balance — but it's lower than what some other firms charge, says Krawcheck.

TechCrunch

The agency said it found advisors calculating the fees on the market value of assets at the end of the billing cycle when clients were told the average daily balance would be used instead.

Forbes

Because the firms with flexibility in compensation are slowly picking the best performers out of lockstep firms". The working capital line of credit – (The ratio of the highest daily balance to the average daily balance - HDB/ADB"- and their relation to the day each year that the loan balance is paid in full, the "BPF" date).

Forbes

And from that, lenders calculate what your average daily balance is.

Huffington Post

Human-verified similar examples from authoritative sources

Similar Expressions

33 human-written examples

L. 103 208, § 2(c)(7), substituted "average daily principal balance" for "outstanding principal balance" and "during" for "at the end of".

Cornell University

L. 103 208, § 2(c)(8), substituted "average daily principal balance" for "outstanding principal balance" and "during" for "at the end of".

Cornell University

Take, for example, this section from a PNC Bank card agreement: "We will calculate finance charges on cash advances by multiplying the 'average daily balance of cash advances' by the total number of days in the billing cycle, and multiplying the product by the daily periodic rate of finance charge then in effect.

The New York Times

Average daily fluid balance was significantly higher in nonsurvivors than in survivors (1,000 ml versus 150 ml; P < 0.001).

Critical Care

For calculation of the average daily energy balance of every individual cow, energy intake was calculated from the mean daily intake of PMR, SUPP and CONC and the corresponding energy contents (MJ NEL).

BMC Veterinary Research

Expert writing Tips

Best practice

In financial documents, always define what the "average daily balance" represents (e.g., before or after certain transactions) for clarity.

Common error

Avoid using "average daily balance" interchangeably with the 'statement balance'. The statement balance is a snapshot at the end of the billing cycle, while the "average daily balance" reflects the average amount over the entire cycle.

Linguistic Context

The phrase "average daily balance" functions as a noun phrase, often serving as the object of a preposition or verb in financial contexts. As Ludwig AI points out, it is frequently used to calculate interest or fees.

Expression frequency: Very common

Frequent in

News & Media

30%

Wiki

25%

Science

20%

Less common in

Academia

10%

Encyclopedias

8%

Formal & Business

7%

Ludwig's WRAP-UP

The phrase "average daily balance" is a very common noun phrase primarily used in financial contexts to calculate interest or fees. Ludwig AI confirms its correct grammatical standing and usability. Predominantly found in News & Media, Wiki, and Science sources, its register ranges from neutral to professional. To ensure clarity, define the term in financial documents and avoid confusing it with the 'statement balance'. Related phrases include "mean daily balance" and "typical daily balance".

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Daily average balance

Reorders the words slightly while maintaining the same meaning.

Mean daily balance

Replaces "average" with "mean", a synonym in this context.

Average daily account balance

Adds "account" to clarify the balance is related to an account.

Typical daily balance

Substitutes "average" with "typical", indicating a usual balance.

Average day-end balance

Specifies that the balance is calculated at the end of each day.

Average end-of-day balance

Highlights the balance at the close of business each day.

Average daily ledger balance

Adds "ledger" to specify the type of balance.

Average daily cleared balance

Indicates the balance after transactions have been processed.

Average daily collected balance

Specifies that the balance includes only collected funds.

Average daily available balance

Highlights the balance that is immediately accessible.

FAQs

How is the "average daily balance" calculated?

The "average daily balance" is calculated by adding up the account balance for each day of the billing cycle and dividing by the number of days in the cycle. This provides an average of the balance throughout the period.

What's the difference between "average daily balance" and the adjusted balance method?

The "average daily balance" calculates interest based on the average of daily balances, while the "adjusted balance" method calculates interest after subtracting payments made during the billing cycle.

Why does my "average daily balance" matter?

Your "average daily balance" matters because it's often used to calculate the interest charges on credit cards and some types of loans. A lower "average daily balance" means lower interest charges.

What can I do to lower my "average daily balance"?

To lower your "average daily balance", make payments more frequently throughout the billing cycle, rather than one large payment at the end. This reduces the balance on which interest is calculated.