Question:
Last December, my BDO ATM account was deducted 300 pesos. Maybe because I did not deposit and had less than 2,000.
On January 8, I deposited 1,000, making my balance 2,239.50.
On January 29, I was deducted 300 pesos again. Why?
Answer:
Your 300-peso deduction was your penalty for falling below your required Maintaining-Balance for 2 consecutive months (December 2015 and January 2016).
Your required Maintaining-Balance or required Average Daily Balance (ADB) is 2,000 pesos.
Your ADB in January was 1,998.12. This is below the required 2,000 pesos.
Here is how Average Daily Balance (ADB) for the month is computed:
These are your daily balances from January 1 to January 29:
January 1 1,239.50
January 2 1,239.50
January 3 1,239.50
January 4 1,239.50
January 5 1,239.50
January 6 1,239.50
January 7 1,239.50
January 8 2,239.50
January 9 2,239.50
January 10 2,239.50
January 11 2,239.50
January 12 2,239.50
January 13 2,239.50
January 14 2,239.50
January 15 2,239.50
January 16 2,239.50
January 17 2,239.50
January 18 2,239.50
January 19 2,239.50
January 20 2,239.50
January 21 2,239.50
January 22 2,239.50
January 23 2,239.50
January 24 2,239.50
January 25 2,239.50
January 26 2,239.50
January 27 2,239.50
January 28 2,239.50
January 29 2,239.50
Let us compute your Average Daily Balance for the month of January.
The formula is:
Add all your balances everyday from January 1 to January 29
Divide the total balances by 29 days
The result is your Average Daily Balance for the month of January.
Total of Daily Balances from January 1 to 7:
1,239.50 x 7 days = 8,676.50
Total of Daily Balances from January 8 to 29:
2,239.50 x 22 days = 49,269
Total of Daily Balances from January 1 to 29:
8,676.50 + 49,269 = 57,945.50
Divide the Total for January by 29 days:
57,945.50 / 29 = 1,998.12
For BDO ATM savings accounts, the required Average Daily Balance (ADB) every month is 2,000.
Your ADB (1,998.12) is lower than 2,000.
It means you were not able to maintain 2,000 in January.
This is the reason why you were again deducted 300 pesos again.
Note:
Many banks compute ADB on the last business day of the month.