Personal Finance Checking Accounts

The largest source of fees for banks when it comes to checking accounts is...

• Overdraft fees

• wire transfer fees

• Check printing fees

• Interest Expense

What is NOT a good strategy to help you avoid overdraft fees?

• Rely solely on the bank app that provides your balance

• tracking all of your banking transactions in a check register

• Keeping all of your receipts and using them to track your spending

• Setting up a text alert so your bank will notify you when your balance is low.

Which of the following is true about checking accounts

• Interest rates are fixed as long as your account is open

• Banks cannot change the fees on your account while it is open

• Banks can charge interest rates but not fees on your account while it is open

• both interest rates and fees are subject to change by the bank

Your cousin Justine overdraws her checking account at least 4 times per month every month. Which of the following recommendations does NOT seem reasonable to help get her account under control?

• Justine should rework her budget and cut out nonessential purchases

• Justine should set up alerts on her account so she receives texts when she has a low account balance

• Justine should shut down her checking account and start paying for everything in cash

• If all her spending is essential, she should look for a second job to help cover her expenses

Which is an advantage of paying your bills using the online bill pay feature with your checking account?

• The company you are paying receives the money on the same day

• There is typically only a small fee to set up and use this feature

• It saves time and paper

• It eliminates lates fees

Which of the following is a way to access the money in your checking account?

• Taking out cash using your credit card at an ATM machine

• Using your debit card to pay for groceries at a Point-of-Sale (POS) terminal

• Depositing a paycheck at an ATM

• Receiving a person-to-person payment from your friend

18. Which of the following is a TRUE statement about check cashing stores?

• Their checking accounts typically cost less than traditional bank accounts

• They tend to charge consumers a lot of hidden fees

• Customers use check cashing stores even though the employees are unfriendly and often make customers feel embarrassed or out-of-place

• They make their money by charging fees for transactions that can be done for free by customers with a traditional checking account

You deposit a birthday check by using the bank app that you have on your smartphone. What is the standard amount of time that you will need to wait in order to get access to these funds?

• Available immediately

• Available the same day

• Usually 1-7 business days later

• 30 business days

Which checking account is best for you if you expect to have an average balance of $1,000? *

• Annual interest rate earned of 1.5% and monthly maintenance fee of $10/month

• Annual interest rate earned of 1.0% and no monthly maintenance fee

• Annual interest rate earned of 0% and monthly maintenance fee of $2.50/month

• Annual interest rate earned of 2.0% and monthly maintenance fee of $5/month

The largest source of fees for banks when it comes to checking accounts is...

• Overdraft fees

• Wire transfer fees

• Check printing fees

• Interest expense