Over 60% of small businesses in the worldface challenges related to cash flow, and in many cases, these issues begin with how their bank accounts are managed.
Failing to maintain the required minimum average daily balance (MADB) in a business-linked savings account can lead to penalties, restricted access to essential banking services, and missed opportunities to build financial credibility.
Many entrepreneurs underestimate the long-term importance of consistently maintaining an account balance. It’s not just about saving on fees. It helps stabilize your finances, ensures uninterrupted access to banking services, and builds trust for future loans.
In this blog, we’ll explain the concept of maintaining balance in a BDO ATM Savings Account, walk you through how MADB is calculated, and highlight the consequences of falling below the required threshold.
What is a BDO ATM Savings Account?
The BDO ATM Savings Account is a simple, interest-earning personal savings account offered by BDO Unibank. While designed primarily for personal use, this account provides several advantages for SME owners who need convenient access to funds and straightforward financial management.
With a low minimum balance requirement and easy deposit/withdrawal options, it can help small business owners handle day-to-day transactions, maintain cash flow, and manage finances easily and flexibly.
Features of BDO ATM Savings Account
The BDO ATM Savings Account offers several features that make it particularly beneficial for SME owners. They are as follows:
- Accessibility: BDO offers easy access to funds through over 1,200 branches and 5,400 ATMs nationwide. This allows SME owners to withdraw or deposit cash anytime, ensuring smooth operations for payments like suppliers and salaries, without concerns about limited banking hours or locations.
- Online Banking: BDO’s online banking features allow you to manage finances remotely. Business owners can open accounts online, transfer funds, check balances, and handle transactions efficiently, making it ideal for those needing flexibility outside traditional banking hours.
- Debit Card: The debit card linked to the BDO ATM Savings Account enables online and in-store cashless transactions. SME owners can purchase inventory, pay business-related services, and even make international purchases, all without carrying cash, making payments quicker and more secure.
These features help meet your business needs, providing a flexible and affordable banking solution for day-to-day business operations.
To ensure your BDO ATM Savings Account remains in good standing and continues to provide these benefits, it’s essential to understand the concept of maintaining a balance and how it impacts your account.
Maintaining Balance Limit for BDO ATM Savings Account
Maintaining Balance in BDO ATM Saving account refers to the Minimum Average Daily Balance (MADB) required to keep your account active and avoid penalties. It is the average balance of your account calculated over a month. Banks require account holders to maintain a certain MADB to ensure the account remains in good standing.
For BDO ATM Savings Accounts, the MADB requirement is ₱2,000. This means that to avoid fees and maintain an active account, your average daily monthly balance should be at least ₱2,000.
How is MADB Calculated?
MADB is calculated by adding up the balance in your account at the end of each day during the month, then dividing this total by the number of days in the month.
For example, if you deposit or withdraw funds during the month, the daily balance will fluctuate, but the average of these balances over the month must meet or exceed the required ₱2,000 to stay fee-free.
What Happens if the Balance Falls Below MADB?
If your balance falls below the required ₱2,000 MADB for two consecutive months, BDO will impose a ₱300 penalty. This fee is applied to your account because you did not meet the minimum balance requirement.
It’s important to note that this penalty can accumulate month after month if the minimum balance is not maintained, adding unnecessary costs to your business or personal account. Therefore, monitoring your balance regularly is essential to avoid falling below the MADB.
Now that you know the required balance, let’s look at why maintaining balance in the BDO ATM Savings Account matters, especially if you run a business.
Why is Maintaining a BDO ATM Savings Account Important for SME Owners?
A BDO ATM Savings Account can be a valuable asset for small and medium-sized business owners. When managed properly, this type of account supports essential aspects of business operations, from managing cash flow to building a foundation for future financing. Here's how:
Access to Funds for Daily Operations
SME owners often deal with frequent transactions, including paying suppliers, covering payroll, purchasing inventory, and handling operational expenses. A savings account that allows quick cash access through ATMs and debit card transactions ensures funds are available whenever needed. This flexibility supports smooth day-to-day operations and helps prevent business disruptions due to delays in accessing cash.
Building a Financial Safety Net
Keeping a minimum balance in your BDO ATM Savings Account provides a cushion during financial uncertainty. Whether it’s an unexpected repair, delayed receivables, or a sudden drop in sales, maintaining a steady balance gives you something to fall back on.
This buffer is critical for weathering short-term cash flow issues for SME owners with fluctuating income or seasonal sales patterns.
Gaining Access to Core Banking Services
Some banking features and services require an average daily balance to be maintained. These include access to online banking, which is essential for managing transactions, transferring funds, and monitoring activity remotely.
Maintaining a healthy balance also helps you qualify for services like overdraft protection, business loans, or other financial products that require a review of your banking activity.
Strengthening Creditworthiness
A stable account history is a valuable signal of financial responsibility. When assessing a business's creditworthiness, lenders often consider banking behavior, such as consistent deposits and a maintained balance.
A well-managed BDO ATM Savings Account can support your case when applying for loans, credit lines, or other financing products. Over time, this builds trust with the bank and may open doors to more favorable terms.
Your BDO ATM account helps with daily banking, but having the right funding support can help your business do even more.
How does n90 Complement Your BDO ATM Savings Account?
While your BDO ATM Savings Account helps you handle day-to-day banking, it doesn’t offer access to quick business funding when you need it most. That’s where n90 steps in with flexible financing options built specifically for SMEs in the Philippines.
We offer tailored financing solutions, providing the capital to bridge cash flow gaps, expand operations, or take on new opportunities.
Here’s how n90 supports SME owners:
- Bridge Loans for Short-Term Needs: A Bridge loan allows you to access funds when managing payment delays, seasonal dips, or unexpected expenses.
- Invoice Financing for Better Cash Flow: Invoice financing frees up capital tied to unpaid invoices, allowing you to cover operating costs without waiting to get paid.
- Small Business Loans for Growth: With credit options, Small business loan is designed for growing businesses. You can fund expansion, buy inventory, or invest in new opportunities.
- Straightforward Terms: There are no hidden fees or confusing terms. You get clear information upfront so you can plan with confidence.
- Support You Can Trust: We guide new borrowers through lending and offer financial coaching when needed.
n90 works alongside your existing banking setup, not against it. We’re here to support the parts of your business that need more than a savings account.
Final Note!
Maintaining balance in a BDO ATM Savings Account isn’t just about meeting the minimum balance; it’s about staying prepared, managing cash flow, and keeping your business operations steady. With the right balance of practices, you avoid fees, access key banking services, and build a stronger financial foundation.
But as your business grows, a basic savings account may fall short. You may need additional funds to handle delayed payments, purchase bulk inventory, or seize new growth opportunities. At n90, we offer fast and flexible financing solutions, like bridge loans, invoice financing, and small business loans, built specifically for SMEs in the Philippines.
With quick approvals, transparent terms, and ongoing support, we help you move forward without cash flow disruptions. Apply now or call us at +63 962 663 1393 to explore the right financing option for your business.
FAQs
1. Can I restore my BDO ATM Savings Account if it was closed due to not maintaining the MADB?
A: Yes, but it depends on how long the account has been inactive or below the required balance. If the account was closed due to prolonged non-compliance, you may need to open a new account. Contact BDO customer service or visit a branch for case-specific guidance and reactivation options.
2. Does maintaining a higher balance than the MADB earn more interest in a BDO ATM Savings Account?
A: While you will earn interest by maintaining the required minimum balance, BDO ATM Savings Accounts typically offer minimal interest rates regardless of the amount beyond the MADB. If growing your savings through interest is a priority, consider exploring BDO's higher-interest savings products or time deposit accounts.
3. How often should SME owners review their account balance to ensure they meet the MADB?
A: SME owners should ideally monitor their balance weekly or after every major transaction. Using BDO’s online or mobile banking platforms can make this easier and help avoid surprises at the end of the month when MADB is assessed.
