Selecting a Bank Answers

Henry is moving and needs to open a new checking account. He is trying to decide between three banks using the chart below:Bank XBank YBank ZNo monthly fees if balance stays above $500, otherwise $7 per monthNo monthly fees if check card is used less than 6 times per month$5 monthly feeNo minimum balance$25 minimum balanceNo minimum balanceOnline banking servicesOnline banking servicesOnline banking servicesNon-Bank X ATM fee - $2.00 per transactionNon-Bank Y ATM fee - $1.50 per transactionNon-Bank Z ATM fee - $2.00 per transactionHenry usually has about $300 in his account at any given time during the month. He limits his ATM visits to one per week and is interested in banking online options. Bank X and Bank Z have 5 ATMs within a 5 mile radius of Henry’s work and his new home. Which bank should he choose?a.Bank Xb.Bank Yc.Bank Zd.Bank X and Z

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

Lucy will open a checking account and 3 savings accounts for different purposes (emergency fund, gift fund, and education fund). Which of the following items should not be among her main considerations in selecting these accounts?a.The account recommended for somebody with different needs.b.The amount of interest to be paid on deposits.c.Any advantages of having all the accounts at the same bank.d.Fees for having multiple savings accounts.

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

Assume that you are going to open a checking account. You are examining different banks and banking accounts to choose a bank account for your needs. Which of the following statements should not be one of your reasons for examining different banks?a.Being more informed leads to being better prepared to make financial decisions.b.Bank E offers you a chocolate bar for filling out an application for checking and credit at the same time.c.Banks could have charges that you do not know about until reading carefully.d.You will become more aware of how well the banks meet your particular needs.

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

Which statement below gives the best reason for considering personal needs, values, and circumstances in selecting a bank account?a.Fees do not matter; only what the person has heard is a good feature in a bank.b.This information can lead to a better match between account features and the person’s needs.c.The best bank account is simply the best bank account for everybody.d.Opening an account should be done by chance so that personal biases do not interfere.

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

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