Question

Henry is moving and needs to open a new checking account. He is trying to decide between three banks using the chart below:

Bank X
Bank Y
Bank Z
No monthly fees if balance stays above $500, otherwise $7 per month
No monthly fees if check card is used less than 6 times per month
$5 monthly fee
No minimum balance
$25 minimum balance
No minimum balance
Online banking services
Online banking services
Online banking services
Non-Bank X ATM fee - $2.00 per transaction
Non-Bank Y ATM fee - $1.50 per transaction
Non-Bank Z ATM fee - $2.00 per transaction

Henry 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 X
b.
Bank Y
c.
Bank Z
d.
Bank X and Z

Answer 1

b. Bank Y

Reason: Henry keeps about $300, so he would pay Bank X’s $7 monthly fee (balance under $500) and Bank Z’s $5 monthly fee. Bank Y waives the fee if the check/debit card is used fewer than 6 times per month; Henry uses about 1 ATM/week (≈4/month), so he meets that condition and avoids monthly fees. Bank Y also meets the $25 minimum balance requirement and offers online banking.