Question

Emma is ready to open a new checking account and is trying to decide between three banks using the chart below:

Bank R
Bank S
Bank T
No monthly fees if balance stays above $300, otherwise $7 per month
No monthly fees if check card is used more than 6 times per month, otherwise $10 monthly fee
$5 monthly fee
No minimum balance
$25 minimum balance
No minimum balance
Online banking services
Online banking services
No online banking options
Non-Bank R ATM fee - $2.00 per transaction
Non-Bank S ATM fee - $1.50 per transaction
Non-Bank T ATM fee - $2.00 per transaction

Emma 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 R
b.
Bank S
c.
Bank T
d.
Bank R and S

Answer 1

Answer: a. Bank R

Reason: With about $1,000 she meets Bank R’s no-fee balance requirement, R offers online banking, and there are 10 R ATMs nearby so she can avoid non‑bank ATM fees. Bank S has only one distant ATM (so she’d likely pay ATM fees) and its no-fee condition depends on >6 check‑card uses. Bank T charges $5/month and has no online options.