Understanding Checking and Debit Accounts — Quiz Answers

Natasha has $⁢1000 to open a checking account. She can maintain a monthly balance of $⁢600. She also has a savings account at the same bank. Her employer offers direct deposit and she plans to use online bill paying. She writes about eight checks per month. She currently uses the ATM machines at several different banks. Natasha sometimes overdraws her account. Bank Account Terms and Conditions Account A Account B Account C Account D Minimum Balance 500 dollars 250 dollars 100 dollars 1000 dollars Interest 0 point 2 percent 0 percent 0 percent 0 point 2 percent Overdraw Fees 0 dollars if linked with savings account or 40 dollars per overdraw 35 dollars per overdraw 25 dollars per overdraw 40 dollars per overdraft ATM Usage/Fees 0 dollars for all ATMs 0 dollars for ABC bank ATMs / 3 dollars for non-ABC bank ATMs 3 dollars per transaction 2 point 5 0 dollars per transaction Monthly Fee 10 dollars or 0 dollars with direct deposit 0 dollars 0 dollars 7 dollars or 0 dollars with linked savings Online Bill Payment free free free free Minimum Deposit to open 100 dollars 100 dollars 50 dollars 500 dollars Check Writing Limits unlimited 12 per month 10 per month unlimited Natasha wants an account with the lowest fees. Which checking account would be best for Natasha?

Which bank has the highest possible overdraft fee? Bank Account Terms and Conditions A B C D Minimum Balance 500 dollars 250 dollars 300 dollars 100 dollars Interest 0 point 2 percent 0 percent 0 point 0 2 percent 0 percent Overdraft Fees 0 dollars if linked with savings account or 40 dollars per overdraft 35 dollars per overdraft 25 dollars per overdraft 25 dollars per overdraft ATM Usage/Fees 0 dollars for all ATMs 0 dollars for ABC bank ATMs 3 dollars for non-ABC bank ATMs 4 dollars per transaction 3 dollars per transaction Monthly Fee 10 dollars or 0 dollars with direct deposit 0 dollars 0 dollars 0 dollars Annual Fee 0 dollars 10 dollars 0 dollars 12 dollars

Jana has $⁢100 to open a checking account. She can maintain a monthly balance of $⁢300. She also has a savings account at the same bank. She plans to use online bill paying and write fewer than 10 checks per month. She currently uses her bank’s ATM several times per month. Jana does not overdraw her account. Bank Account Terms and Conditions Account A Account B Account C Account D Minimum Balance 500 dollars 250 dollars 100 dollars 1000 dollars Interest 0 point 2 percent 0 percent 0 percent 0 point 2 percent Overdraw Fees 0 dollars if linked with savings account or 40 dollars per overdraw 35 dollars per overdraw 25 dollars per overdraw 40 dollars per overdraft ATM Usage/Fees 0 dollars for all ATMs 0 dollars for ABC bank ATMs / 3 dollars for non-ABC bank ATMs 3 dollars per transaction 2 point 5 0 dollars per transaction Monthly Fee 10 dollars or 0 dollars with direct deposit 0 dollars 0 dollars 7 dollars or 0 dollars with linked savings Online Bill Payment free free free free Minimum Deposit to open 100 dollars 100 dollars 50 dollars 500 dollars Check Writing Limits unlimited 12 per month 10 per month unlimited Jana wants an account with the lowest fees. Which checking account would be best for Jana?

Irma has $⁢500 to open a checking account. She wants an account with the lowest fees. She plans to use only her bank’s ATM to deposit her paychecks and withdraw cash. Bank Account Terms and Conditions Minimum Balance Interest Overdraft Protection ATM Fees Monthly Fee A 500 dollars 0 point 1 percent Yes 0 dollars for all ATMs 0 dollars B 250 dollars 0 percent no 0 dollars for ABC bank ATMs 5 dollars C 50 dollars 0 percent no 2 dollars per transaction 10 dollars or 0 dollars with direct deposit D 100 dollars 0 point 1 percent no 0 dollars per transaction 5 dollars or 0 dollars with direct deposit Which checking account would be best for Irma?

Which bank does not charge at all for using the ATM? Bank Account Terms and Conditions A B C D Minimum Balance 500 dollars 250 dollars 300 dollars 100 dollars Interest 0 point 2 percent 0 percent 0 point 0 2 percent 0 percent Overdraft Fees 0 dollars if linked with savings account or 40 dollars per overdraft 35 dollars per overdraft 25 dollars per overdraft 25 dollars per overdraft ATM Usage/Fees 0 dollars for all ATMs 0 dollars for ABC bank ATMs 3 dollars for non-ABC bank ATMs 4 dollars per transaction 3 dollars per transaction Monthly Fee 10 dollars or 0 dollars with direct deposit 0 dollars 0 dollars 0 dollars Annual Fee 0 dollars 10 dollars 0 dollars 12 dollars

Wilbur has $⁢800 to open a checking account. He can maintain a minimum balance of at least $⁢500. He plans to use the ATM twice a month and he maintains a savings account at the same bank. His employer has direct deposit and he sometimes overdrafts his account. Bank Account Terms and Conditions A B C D Minimum Balance 500 dollars 250 dollars 300 dollars 100 dollars Interest 0 point 2 percent 0 percent 0 point 0 2 percent 0 percent Overdraft Fees 0 dollars if linked with savings account or 40 dollars per overdraft 35 dollars per overdraft 25 dollars per overdraft 25 dollars per overdraft ATM Usage/Fees 0 dollars for all ATMs 0 dollars for ABC bank ATMs 3 dollars for non-ABC bank ATMs 4 dollars per transaction 3 dollars per transaction Monthly Fee 10 dollars or 0 dollars with direct deposit 0 dollars 0 dollars 0 dollars Annual Fee 0 dollars 10 dollars 0 dollars 12 dollars Wilbur wants a checking account with the lowest fees. Which checking account would be best for Wilbur?

Terrell has $⁢300 to open a checking account. He plans to use the ATM four times per month at his local branch. He does not overdraft his account. Bank Account Terms and Conditions A B C D Minimum Balance 500 dollars 250 dollars 300 dollars 100 dollars Interest 0 point 2 percent 0 percent 0 point 0 2 percent 0 percent Overdraft Fees 0 dollars if linked with savings account or 40 dollars per overdraft 35 dollars per overdraft 25 dollars per overdraft 25 dollars per overdraft ATM Usage/Fees 0 dollars for all ATMs 0 dollars for ABC bank ATMs 3 dollars for non-ABC bank ATMs 4 dollars per transaction 3 dollars per transaction Monthly Fee 10 dollars or 0 dollars with direct deposit 0 dollars 0 dollars 0 dollars Annual Fee 0 dollars 10 dollars 0 dollars 12 dollars Which checking account would be best for Terrell?

Becca has $⁢500 to open a checking account. She wants an account with the lowest fees. She writes about 12 checks per month and her employer has direct deposit. She plans to only use her bank’s ATM four times a month. Bank Account Terms and Conditions Minimum Balance Online banking Check Limits ATM Fees Monthly Fee A 500 dollars yes unlimited 0 dollars for all ATMs 12 dollars B 250 dollars yes 15 per month 0 dollars for ABC bank ATMs 10 dollars C 50 dollars yes 0 point 0 8 dollars each 2 point 5 0 dollars per transaction 0 dollars with direct deposit D 100 dollars no over 10 0 point 1 2 dollars each 3 dollars per transaction 2 dollars Which checking account would be best for Becca?

Karen has $⁢800 to open a checking account. She wants an account with the lowest fees. She only writes about five checks per month and her employer has direct deposit. She does not plan on using the ATM or online banking. Bank Account Terms and Conditions Minimum Balance Online banking Check Limits ATM Fees Monthly Fee A 500 dollars yes unlimited 0 dollars for all ATMs 5 dollars B 250 dollars yes 15 per month 0 dollars for ABC bank ATMs 10 dollars C 50 dollars yes 0 point 0 8 dollars each 2 dollars per transaction 0 dollars with direct deposit D 100 dollars no over 10 0 point 1 2 dollars each 3 dollars per transaction 2 dollars Which checking account would be best for Karen?

James has $⁢1500 to open a checking account. He can maintain a monthly balance of at least $⁢1000. He plans to use the ATM four times per month at his local branch. He does not overdraft his account and plans to use direct deposit. He also plans to pay his bills online and he averages 8 bills per month. Bank Account Terms and Conditions A B C D Minimum Balance 0 dollars 500 dollars 3000 dollars 1000 dollars Interest 0 percent 0 percent 0 point 0 2 percent 0 percent Overdraft Fees 0 dollars if linked with savings account or 40 dollars per overdraft 35 dollars per overdraft 25 dollars per overdraft 25 dollars per overdraft ATM Usage/Fees 0 dollars for all ATMs 0 dollars for ABC bank ATMs / 3 dollars for non-ABC bank ATMs 4 dollars per transaction 3 dollars per transaction Monthly Fee 10 dollars or 0 dollars with direct deposit 0 dollars 0 dollars 12 dollars Annual Fee 0 dollars 36 dollars 0 dollars 0 dollars Online Bill Payment free free free 0 point 5 0 dollars per transaction Deposit to open 50 dollars 50 dollars 500 dollars 1 dollars comma 000 Check Limits unlimited 50 per month unlimited unlimited James wants an account with the lowest fees. Which checking account would be best for James?