What is The Full Form of AQB in Banking

The AQB full form in Banking is Average Quarterly Balance. The Average Quarterly Balance is a measure used by banks to calculate the average amount of money in a customer’s account throughout a given quarter. This statistic is frequently used to determine service fees, eligibility for specific financial products, and interest computations. AQB rules may apply to a variety of accounts, including savings, current, and business accounts.

How is AQB Calculated?

The AQB is determined by aggregating an account’s daily closing balances over a quarter and dividing the total by the number of days in the quarter.

                     Sum of Daily Closing Balances​

AQB    =   — —————————————

                    Number of Days in the Quarter

Significance of AQB in Banking:

Many banks require customers to maintain a minimum AQB to avoid service fees or fines. Failure to meet the required AQB may result in fees. Maintaining a specific AQB may entitle consumers to premium banking goods, services, or incentives such as higher interest rates, cheaper loan interest rates, or fee waivers. The AQB can be used to calculate the quarterly interest accrued on interest-bearing accounts.