Question

Kiera has $500 to open a checking account. She wants an account with the least amount of fees. She plans on only using her bank’s ATM to deposit her paychecks and withdraw cash.

A 6-column table with 3 rows. Column 1 has entries A, B, C. Column 2 is labeled Minimum Balance with entries 500 dollars, 250 dollars, 50 dollars. Column 3 is labeled Interest with entries 0.1 percent, 0 percent, 0 percent. Column 4 is labeled Overdraft protection with entries yes, no, no. Column 5 is labeled A T M Fees with entries 0 dollars for all A T M s, 0 dollars for A B C banks A T M s and 1 dollar and 50 cents for all other A T M s, 2 dollars per transaction. Column 6 is labeled Monthly Fee with entries 12 dollars, 5 dollars, 15 dollars or 0 dollars with direct deposit.

Which checking account would be best for Kiera? Account

Answer 1

Account B.

Reason: Kiera will use only her bank’s ATMs, so she avoids ATM charges with A or B (C charges $2 per transaction even at its own ATMs). She has $500 so meets every account’s minimums. Comparing monthly costs (since interest is negligible): A = $12/month, B = $5/month, C = $15/month (or $0 only if she has direct deposit, but she plans to deposit paychecks at the ATM). Thus B has the least fees for her situation.