Selecting a Bank Answers

Vítor knows he must prepare and possibly prevent overdraft funds fees since they are charged automatically. Which statement below would be the least effective element of a plan Vitor could use to accurately estimate (or minimize) overdraft fees on the account? a. Always keep extra money in the account for such unexpected events. b. Use the debit card for a large number of small purchases and check the balance later. c. Always keep track of how much is being temporarily held d. Do not enter deposits into the register until they are verified as available. Please select the best answer from the choices provided

Jenna wants to save a $10,000 trust fund she received when she turned 21, and add $50 per month as emergency funds. She has narrowed her search for a savings account to 2 banks, Bank A and Bank B. Bank A pays a fixed rate of interest, and Bank B pays a variable rate, but both rates are currently the same. Jenna’s trusted friend advises her to make the selection based upon her banking needs in consideration of the other services and fees of the banks, because the interest rates are the same. If you were advising Jenna about how to choose an account based upon her own needs, what advice below would you not give her? a. The fees and services will make a much bigger difference than the type of interest while your balances are small. b. The more that you expect to save, the more you should think about what effect the interest rates might have in respect to your values. c. Choose the variable rate because if it goes up, you will make a lot of money that will pay for the fees. d. With either bank, you will be earning a competitive rate of interest. You can re-evaluate once a year in comparison with other banks’ interest rates. Please select the best answer from the choices provided

Which of the following items may be a good consideration in selecting a bank?I. The bank sends a representative to the local mall to promote new applications.II. Number of ATMs or bank branches near where you live, shop, work, or travel.III. Knowledge of personal usage habits and needs.a.I and IIb.II and IIIc.I and IIId.I, II and III

You are examining your choices of banks to open a new checking account. Potential costs include monthly maintenance fees, statement copy fees, and ___________. a. Credit cards b. Debit cards c. Overdraft fees d. Interest on deposits Please select the best answer from the choices provided

Sharon wants to open a checking account from which to pay bills. She wants online services, and a debit card, which both banks provide for free. Based upon past experience, she expects to accidentally overdraft the account 1 time per year, due to unexpected charges and miscommunications. She expects no 2nd copies of statements, and to use network ATMs 4 times per month with either bank. She has $3300 in an emergency savings account at First State Bank, and thinks that the balance will be enough to cover overdrafts in the future if automatic transfers are made when needed. Based on the tables of fees, above, if Sharon chooses First State Bank, will it save her money over choosing Common Bank? a. No, Common Bank will save Sharon more money. b. Yes, First State Bank will save Sharon money. c. No, First State Bank and Common Bank would have the same costs for Sharon. d. No, costs cannot be estimated in advance, so this information cannot be used. Please select the best answer from the choices provided

Jack is considering a list of features and fees for Current Bank: Jack plans on using network ATMs about 4 times per month. What would be Jack’s total estimated annual fees for a checking account with direct paycheck deposit, one overdraft per year, and no 2nd copies of statements? a. $44 b. $104 c. $144 d. $176 Please select the best answer from the choices provided

Emma is ready to open a new checking account and is trying to decide between three banks using the chart below:Bank RBank SBank TNo monthly fees if balance stays above $300, otherwise $7 per monthNo monthly fees if check card is used more than 6 times per month, otherwise $10 monthly fee$5 monthly feeNo minimum balance$25 minimum balanceNo minimum balanceOnline banking servicesOnline banking servicesNo online banking optionsNon-Bank R ATM fee - $2.00 per transactionNon-Bank S ATM fee - $1.50 per transactionNon-Bank T ATM fee - $2.00 per transactionEmma usually has about $1000 in her account at any given time during the month. She usually visits the ATM twice a week and is interested in banking online options. Bank R has 10 ATMs within a 5 mile radius of Emma’s home. Bank S has 1 ATM 10 miles from Emma’s work. Which bank should she choose?a.Bank Rb.Bank Sc.Bank Td.Bank R and S

Macky wants to open a checking account. He is examining different banks and banking accounts. Then he will choose a bank account for his needs. Which of the following statements should not be one of Macky’s reasons for choosing a bank?a.Being more informed leads to being better prepared to make financial decisions.b.Banks could have charges that Macky does not know about until reading carefully.c.The first bank Macky considered offered a chance to win a prize upon opening an account.d.He will become more aware of how well banks meet his particular needs.

Barry wants to open a checking account. He wants online services, and a debit card. He is looking at the following tables of fees from his employer's credit union, EECU, and a local bank, E-town Bank: Based upon past experience, Barry expects no overdrafts. He expects no 2nd copies of statements. Barry estimates that he will use network ATMs about 5 times a month with either bank. Barry decides in the end to choose EECU. Assuming that both banks provide the necessary services equally well, and based upon the tables of fees given above, how much can Barry reasonably expect to save annually by choosing EECU in this case over E-town bank? a. $72 b. $78 c. $144 d. $24 Please select the best answer from the choices provided

Why is it sometimes easier to open an account with a bank rather than with a credit union?a.Most credit unions require some kind of affiliation, but banks will let anyone with money open an account.b.Credit unions usually require more paperwork than banks.c.Banks can generally open an account immediately, but credit unions require a waiting period.d.Banks can open accounts over the phone or online, but credit unions can only open accounts in person.