Financial Literacy: Comparing Checking Accounts and Fees

Bank A charges a $6 monthly maintenance fee unless the account holder keeps at least $500 in the account. Maya's balance stayed above $500 for 8 months and below $500 for 4 months. How much did she pay in monthly maintenance fees for the year?

Compare these two checking accounts for one month. Account A has no monthly fee but charges $3 for each out-of-network ATM use. Account B has a $5 monthly fee but charges $1 for each out-of-network ATM use. If Jordan uses an out-of-network ATM 4 times, which account costs less for the month?

A checking account charges a $35 overdraft fee each time a transaction is approved when there is not enough money in the account. Taylor had 2 overdrafts in March. How much did Taylor pay in overdraft fees?

A student checking account charges no monthly fee and includes 3 free out-of-network ATM withdrawals per month. After that, each out-of-network ATM withdrawal costs $2.50. If Priya makes 7 out-of-network ATM withdrawals in one month, how much does she pay in ATM fees?

Account C charges a $10 monthly fee. The fee is waived if the account holder receives at least $1,000 in direct deposits during the month. In April, Luis received direct deposits of $650 and $425. Was the monthly fee waived? Explain.

Nia is choosing between two checking accounts. Account X has a $4 monthly fee and unlimited free debit card transactions. Account Y has no monthly fee but charges $0.25 for each debit card transaction after the first 20 transactions. Nia makes 36 debit card transactions in a month. Which account costs less?

A bank advertises a checking account as free, but it charges $3 for paper statements each month. If a customer chooses paper statements for a full year, what is the yearly cost of the paper statement fee?

Sasha has an average balance of $300. She is comparing two accounts. Account A has a $7 monthly fee with no minimum balance requirement. Account B has no monthly fee if the balance stays above $400, but charges $9 for any month below $400. Based only on monthly fees, which account is better for Sasha if her balance stays around $300 all year?

A checking account has a $12 monthly maintenance fee. The fee can be waived by meeting one of these conditions: keep a $1,500 minimum daily balance, receive $500 in monthly direct deposits, or be under age 18. Marcus is 17, has a balance of $200, and has no direct deposit. Does he pay the monthly fee? Explain.

A customer uses a non-bank ATM that charges a $2.75 machine fee. The customer's own bank also charges a $2.50 out-of-network ATM fee. What is the total cost of this ATM withdrawal?

Elena is comparing accounts for one year. Account A charges $8 per month. Account B charges $2 per month plus an annual debit card fee of $25. Which account has the lower yearly cost?

A bank charges $30 for each overdraft, but it limits overdraft fees to 3 per day. On one day, Andre had 5 overdraft transactions. What is the maximum overdraft fee he could be charged for that day?

Riley is choosing a checking account. Account P has a $5 monthly fee, no ATM fees at any ATM, and a $35 overdraft fee. Account Q has no monthly fee, $3 out-of-network ATM fees, and a $25 overdraft fee. In a typical month, Riley uses an out-of-network ATM twice and has no overdrafts. Which account costs less in a typical month?

A checking account requires a minimum opening deposit of $100. It also has a $6 monthly fee unless the balance stays above $250. Is the minimum opening deposit the same as the minimum balance needed to avoid the fee? Explain.

Create a recommendation for this situation: A high school senior wants a checking account with low costs. They expect to keep about $150 in the account, use mobile banking, avoid overdrafts, and use an out-of-network ATM once per month. Account A has no monthly fee, free mobile banking, and a $3 out-of-network ATM fee. Account B has a $10 monthly fee unless the balance is at least $500, free mobile banking, and no ATM fees. Which account should they choose and why?