Comparing Bank Fees

The table shows the monthly fees for the checking accounts at two banks. Bank | Monthly Fee ---|--- Y | 1% of checking account balance Z | $5 Which statement is best supported by the information in the table?

• A. The fee at Bank Y will be more than the fee at Bank Z only when a customer’s balance is more than $400.

• B. The fee at Bank Y will be the same as Bank Z.

• C. The fee at Bank Y will be more than the fee at Z only when a customer account is less than $400.

• D. The fee at Bank Y will be more than Bank Z.

According to the table, which bank has the best overdraft fee for a 6 month plan? By how much is that bank cheaper than the other bank?

• Bank A is cheaper by $10

• Bank B is cheaper by $15

• Bank A is cheaper by $20

• Bank B is cheaper by $5

If Sam goes home from college and pulls from the ATM 4 times a year. Which bank would be the best option to open an account with?

• Second Chance Bank because the one-time fee is cheaper.

• National Credit Union because the fee is cheaper for each time.

• Second Chance Bank because he would spend less for the year.

• National Credit Union because he would spend less for the year?

Victory is going away to Lane Junior College for 2 years. Which financial institution should she choose to open an account with for the best price?

• Second Chance Bank because the total fees would be $12.

• National Credit Union because the total fees would be $10.

• Second Chance Bank because the total would be $32.

• National Credit Union because the total fees would be $20.

If Tracy uses only a debit card for 75 transactions, which financial institution offers the best basic checking account?

• National Credit union, because their fee is $5 more than Second chance.

• National Credit union, because they offer a flat fee of $3 no matter how many transactions are made.

• Second Chance Bank, because they only charge $0.10.

• Second Chance Bank, because their fees are $4.50 less than National Credit Union.

Which of the following is best supported by the information in the table as a reason she chose Bank A?

• Bank A has a higher minimum balance.

• Bank B has a lower ATM fee and smaller overdraft charge.

• Bank A has a lower ATM fee and smaller overdraft charge.

• Bank B has a higher minimum balance.

Which card is better for avoiding debt?

• Prepaid Card

• Debit Card

• Credit Card

• None of the above

What is a major advantage of using a debit card instead of a credit card?

• Debit cards offer point and rewards for purchases.

• There are no overdraft fees for debit cards.

• You do not have to pay interest on purchases.

• Debit cards help build interest.

What is the difference between a credit and a debit card?

• Credit cards and debit cards are the same.

• Credit cards use money borrowed from a financial institution, a debit card is funds from your own account.

• A debit card has a limit.

• Debit cards use money from the bank and a credit card uses funds from your own account.

What is a risk of using a credit card irresponsibly?

• You cannot withdraw cash from your account.

• You cannot make in-store and online purchases.

• You may overdraft your account.

• You may accumulate debt.