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adjusted balance method

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Financial Dictionary

Adjusted Balance Method

A finance/accounting method where costs are based on the amount(s) owing at the end of the current time period (once credits and payments are posted).

Investopedia Commentary

Most savings accounts use this system. Interest earned in the account is calculated at the end of the month once all the transactions have been posted.

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What Is Money?

See also: Average Daily Balance Method, Credit Card, Past Due Balance Method, Previous Balance Method

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