Daily balance is the minimum balance you are required to maintain in your bank account at the end of each day. If you do not maintain your daily balance for a while, the bank will charge you extra fee as ‘service charge’ which can be understood as a form of penalty. Before choosing the bank where you want to open your savings account, it is best to know what their daily balance requirement is.

Example:
Different banks have different daily balance limits, banks like SBI and Union Bank require a daily balance of as less as 1000 rupees for a Savings account while Axis bank and HDFC have a limit of 10,000 and 15,000 respectively.