Low balance method

Low balance method

A method of calculating interest on the basis of the lowest balance of an account over the applicable period.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Low Balance Method

A way to calculate interest on a loan or account where one considers the lowest amount that is owed over a given period. This results in less interest paid to the lender or other entity to which the account is owed.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved