average daily balance

average daily balance definition - finance
  1. A method that credit card companies use to calculate how much interest is owed by a customer.
  2. A method used by a bank or savings and loan to calculate how much interest is payable to the customer in the case of a savings account or interest-bearing checking account.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.