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What is Average Quarterly Balance (AQB) and How to Calculate it?
Posted on Wednesday, March 19th, 2025 | By IndusInd Bank
You deposit some money into your savings account at the start of the month. A few weeks later, you withdraw some for a bill or an unexpected expense. By the end of the quarter, your balance has gone up and down quite a bit. This often leaves account holders wondering — does this affect the minimum balance requirements set by the bank?
That’s where Average Quarterly Balance (AQB) comes into play. If you’re not sure what it means or how banks calculate it, don’t worry. Once you understand the basics, you’ll know exactly how to manage your savings account and avoid unnecessary penalties. Let’s break it down into simple terms.
What is Average Quarterly Balance (AQB)?
At its core, Average Quarterly Balance — or AQB — is the average amount you need to keep in your savings account over a three-month period.
Banks use this metric to make sure account holders are actively using their accounts, while also maintaining a basic level of funds. Unlike a daily minimum balance, AQB doesn’t focus on individual days. Instead, it looks at how your balance adds up across the entire quarter. That means your account could dip below the required amount for a few days — as long as you recover and balance it out later, you’re still in good shape.
It’s essentially a way for banks to ensure that customers are maintaining a healthy savings habit without constant pressure.
Also Read: Everything You Need to Know About Savings Account Average Monthly Balance
How to Calculate Average Quarterly Balance (AQB)?
Thankfully, calculating AQB is quite straightforward. Here’s the process:
Step 1: Add up the closing balance of your savings account for each day in the quarter.
Step 2: Divide that total by the number of days in the quarter.
That’s your AQB.
| Example: Let’s say the bank is tracking AQB from January to March, which is a 90-day period. If the total of all your daily closing balances across these 90 days adds up to ₹9,00,000, your AQB would be: AQB = ₹9,00,000 ÷ 90 = ₹10,000 In this case, you maintained an average balance of ₹10,000 for the quarter — which is right on target if ₹10,000 is the required AQB for your account type. |
Things to Know About AQB
If you want to stay ahead and avoid any surprises, here are some important points to keep in mind about AQB:
- The bank tracks your balance for the entire quarter. Even if your account dips below the required level for a few days, you still have time to make up for it before the quarter ends.
- Non-maintenance fees apply if you miss the mark. When the average falls below the required level, most banks apply a penalty — though the exact fee varies based on your account type and the shortfall.
- Every bank has its own AQB rules. Premium savings accounts might have higher AQB requirements, while basic accounts may have lower limits. It’s worth checking the specifics for your account.
- All balances count. Even small amounts sitting in your account contribute to the average, so every rupee helps maintain your AQB.
Wondering what happens if you regularly fall short? Repeatedly missing the AQB could lead to additional charges or even account restrictions in some cases.
Also Read: The Importance of Maintaining a Minimum Balance in Your Savings Account
Looking for Hassle-Free Banking? Choose a Zero-Balance Savings Account
If keeping track of your AQB feels like too much effort, there’s an easy solution — IndusInd Bank INDIE Savings Account.
This zero-balance savings account comes with no minimum balance requirement, meaning you can use your funds freely without worrying penalties for falling short. Whether you’re a student, a young professional, or someone who prefers flexibility, this account lets you bank without balance stress.
Along with the freedom of a zero-balance savings account, the IndusInd Bank INDIE Savings Account also offers convenient digital banking service, attractive rate of interest, discounts and offers on top brands. It’s designed to offer the flexibility modern customers want, with all the benefits of a trusted savings account
Wrapping Up!
Average Quarterly Balance may sound technical at first, but once you break it down, it’s just a simple way to manage your savings account responsibly. By staying aware of your balance trends, you can easily avoid penalties and make sure your account benefits stay intact. And if you prefer a savings account with no minimum balance requirement, the IndusInd Bank INDIE Savings Account could be just what you need. Whether you want flexibility or structure, understanding AQB helps you make informed choices about your money — and that’s always a good thing.
