minimum-balance

Vocabulary Word

Definition

'Minimum balance' refers to the smallest amount of money a bank or financial institution requires you to have in your account. If you go below this, the bank may charge fees.

Examples in Different Contexts

In personal finance, managing a 'minimum balance' is crucial for optimizing savings and avoiding unnecessary bank charges. A financial advisor might advise, 'Ensure you understand the minimum balance requirements for your accounts to maximize your savings potential.'

Practice Scenarios

Finance

Scenario:

Using our app, you can monitor your spending and savings in real time. You'll also get alerts if your account balance starts to dip too low.

Response:

Those features can be quite helpful. What would the minimum balance be to prevent those alerts?

Economics

Scenario:

Funds kept by a bank help maintain a level of capital that supports economic growth.

Response:

So, the minimum balance requirement is designed to ensure an ample supply of capital within banks.