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Knowing the average balance of your bank accounts enables you to manage your bank accounts well. You might be a businessman running a business or a housewife trying to save some money on the side, anyone could use the details of average bank balance to maintain their accounts.

Bank accounts are essential to run any business. Technology is growing at a rapid rate so are the ways to transact, people are making more and more cashless transactions and for that we need bank accounts. More and more sales and purchases are being completed securely with online transactions through bank accounts.

The average balance of the account is a way to know the maintained balance throughout a particular period. Let's explore more about the average balance and the quarterly average balance.

The average balance of a bank account is the account balance calculated for a particular period of time. This is calculated based on the multiple closing balances during that particular period. For example an average monthly balance will be calculated by adding all the closing balances of each day during that month and dividing the sum by the number of days in that month.

The average quarterly balance, on the other hand, shows the average balance during a particular quarter in a year. This can be calculated by using the following formula:

Average Quarterly Balance = Sum of all EOD balances / Number of days in a quarter

Let's try to understand it better with an example using British pounds as the currency: let's say that you have a checking account with XYZ bank and your closing balances for the last 3 months goes as follows:

- Closing Balance Month 1: £58,949
- Closing Balance Month 2: £25,347
- Closing Balance Month 3: £69,245

Let's assume the total number of days in this quarter as 91, the equation will fall as follows:

Average Quarterly Balance = £153,541 / 91 = £1687. 26

So, our average quarterly balance can be considered as a simple ratio on a daily amount, this can be particulalry useful for financial forecasting. With the These calculations can be done with an even easier way, that is by using an online calculator. The Average Quarterly Balance Calculator designed by iCalculator will help you with your finance calculation. Let's take a brief look at its functionality.

The Average Quarterly Balance calculator is an online tool, that is made for you to perform your calculations in the easiest way possible. The calculator is very simple and user friendly, you just have to make a few inputs in order to get the result.

Just enter the end of day balance for the 3 months of the quarter in question, the calculator is programmed to add the numbers, divide them and provide you with your average quarterly balance with just a click of the mouse.

The default number of days used in the algorithm of the calculator is 91, which is the most commonly used number when calculating average quarterly balance. You just have to be careful about the accuracy of the numbers you enter because you get the accurate results by entering accurate numbers.

Maintaining a good average bank balance could be beneficial for you, the key here is to know the importance of a good average balance. Let's have a look at some factors that affect the average balance.

- Generally people having checking accounts are required to maintain a minimum average quarterly balance. The amount of minimum balance is decided by the banks and may differ bank to bank. This may be a minim of zero, the amount of an approved overdraft or a credit amount to ensure provision of free services or special interest rate agreements.
- Failing to maintain the average quarterly balance may result in penalties and/or non-maintenance charges in some cases.
- The average balance requirements can vary due to the location of the bank (rural or urban), type of account such as checking or savings and type of bank as in public or private.
- Some banks may apply the average monthly balance instead of average quarterly balance, you should inquire about the same and keep informed in order to maintain a good record with your bank.
- It is not necessary for all the accounts of banks to have the requirements about having to maintain the average quarterly or monthly balance. For example, salary accounts in many banks offer zero balance facility and no fee or charges are applied even if the balance goes down to zero.

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