Target balance

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Banking

1.

Average collected balance that must be maintained to compensate a bank for all the services provided to the company.

The customer's transaction fees are reduced (or sometimes waived) in consideration of the customer maintaining the target balance in an interest free bank account.

Targets are often set monthly and monitored daily.


2.

The minimum amount that needs to be maintained in each sub-account under a target balancing scheme.


See also