Work out minimum balance penalty instantly with clear inputs, formula shown and shareable results.
Minimum balance penalties are charged as a percentage of the shortfall subject to a cap, assessed on the average balance for the month. Expressed against the shortfall, the annual charge often exceeds any interest the balance could have earned.
Penalty
Penalty = min(shortfall × rate, monthly cap)
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.
On the shortfall, which is why keeping close to the minimum limits the damage.
Basic and salary accounts usually carry no minimum balance obligation — ask about switching the account type.