A minimum balance requirement is the lowest amount a bank requires an account to hold, often to keep the account open, avoid a fee, or qualify for a particular account or rate.
General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.
How a minimum balance requirement works
A minimum balance requirement is a condition a bank sets on how much money an account must hold. It can take several forms. Some business accounts require a minimum opening deposit before the account can be used. Others ask the account to keep a balance above a set figure to avoid a monthly maintenance fee, to qualify for a particular account tier, or to earn a stated interest rate. The bank may measure the balance as the amount on any given day, or as an average across the statement cycle, which changes how a single low day affects the result. The exact figure and the way it is measured depend on the provider and account, current as of 1 April 2026.
Daily balance and average balance
Banks measure a minimum balance in different ways, and the method matters. A daily minimum requires the balance to stay at or above the figure every day, so a single dip below it can trigger a fee or lose a benefit. An average minimum looks at the balance across the whole statement cycle, so a short dip can be offset by higher balances on other days. Some accounts combine conditions, such as a minimum balance or a minimum level of card spending. Reading how the requirement is measured shows how much room an account actually has.
Why it matters to a business
A minimum balance requirement affects the real cost and flexibility of an account, because money kept in the account to meet it is money the business cannot use elsewhere. An account with no monthly fee but a high minimum balance may suit a business that holds a steady cash buffer, while an account with a small flat fee and no balance condition may suit one with tight or variable cash flow. Because the figure, the measurement method, and any charge for falling below vary widely, a business should compare these against its own cash position and confirm the current terms with the provider before opening an account.
Frequently asked questions
What is a minimum balance requirement?
What happens if my balance falls below the minimum?
Is a minimum balance measured daily or on average?
Do all business accounts have a minimum balance requirement?
Definitions, fees, features, and eligibility change and vary by region. This page was last reviewed on 1 April 2026. Confirm current terms with the provider before applying.