What Is a Minimum Balance?

The minimum deposit balance refers to the low-interest or non-interest-bearing deposits that a company places with a bank. It is often an additional condition for banks to lend to enterprises. The minimum deposit balance usually accounts for 2% -5% of the loan amount. The minimum deposit balance does not include interest calculation, which increases the actual interest earned by the bank from the revolving loan.

Minimum deposit balance

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The minimum deposit balance refers to the low-interest or non-interest-bearing deposits that a company places with a bank. It is often an additional condition for banks to lend to enterprises. The minimum deposit balance usually accounts for 2% -5% of the loan amount. The minimum deposit balance does not include interest calculation, which increases the actual interest earned by the bank from the revolving loan.

The minimum deposit balance refers to the low-interest or non-interest-bearing deposits that a company places with a bank. It is often an additional condition for banks to lend to enterprises. The minimum deposit balance usually accounts for 2% -5% of the loan amount. The minimum deposit balance does not include interest calculation, which increases the actual interest earned by the bank from the revolving loan.