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


Please select the best answer from the choices provided

A
B
C
D

Answer 1

C

Bank Z. He keeps about $300 so Bank X would charge $7/month. Bank Y avoids a monthly fee only if card use <6 times, but he’ll pay $1.50 per out‑of‑network ATM (4× = $6/month), so Y costs about $6. Bank Z’s flat $5/month plus nearby own ATMs (no ATM fees) is cheapest.