# How is Quarterly Average Balance calculate?

Could someone please explain how QAB is calculated? There have been a couple of answers to this question but none were very clear.

Should the daily balance for 90 days be divided by 3 or by 90 to get QAB?

Relevance

The Sum of Daily Closing Balance for the quarter is divided by the Number of days in the Qtr to calculate the QAB. That is you add the balance in your account each day of the quarter and then divide the sum by the number of days in the quarter (90-92 days depending on the qtr).

See:

http://www.utibank.com/ConsumerBanking/faqwom.html...

See "Mode of calculation" on the following:

http://www.kotak.com/Kotak_BankSite/residentindian...

http://www.hdfcbank.com/personal/accounts/regularc...

• lonon
Lv 4
4 years ago

Average Quarterly Balance Calculator

• Anonymous

QAB or AQB ( Average Quarterly Balance ) is calculated on the end of day balance standing in your account. After that it is the old average principle, summation of 30 days balance divided by 90. In your case it should come to Rs 2500

QAB is the simple average of day-end balances for a calendar quarter, e.g.

Balance during the month of October – Rs. 10,000 daily.

Balance during the month of November – Rs. 5,000 daily.

Balance during the month of December – Rs. 0 daily.

Thus on an average, the balance maintained during the calender quarter October-December is Rs. 5,000.