What Is Minimum Balance?
Example: "My checking account requires a $500 minimum balance or I get charged a $12 monthly fee."
Why It Matters
Minimum balance requirements are one of the most common sources of unexpected bank fees. If your balance dips below the requirement even briefly, you may be charged a monthly maintenance fee. Some accounts base this on the daily balance, while others look at the average balance over the month. When choosing a bank account, consider whether you can comfortably maintain the minimum. Many online banks and credit unions offer accounts with no minimum balance requirement at all, which can be a better fit for students or anyone building up savings.
Learn More
Practice Banking Terms Hands-On
Reading definitions is step one. CustomBank lets you experience real banking concepts in a risk-free simulator.