Question

Which of the following is not a banking term or fee that could result in additional charges on your checking account

A. Maximum balance service fee
B. Checking account overdraft
C. Out-of-network ATM withdrawal
D. Minimum balance service

Answer 1

Maximum balance service fee is not a banking term or fees that could result in additional charges on your checking account.

Further Explanation

Maximum balance service fee is not a banking term. It is a charge, which an account holder must pay indirectly on their minimum balance. It is like a non-refundable fee individual must pay so as not to pay a monthly charge of account maintenance. Maximum service fee is a charge on a bank account minimum balance.

Checking account refers to deposit account in financial institutions. Individuals who owns checking account can deposit and withdraw. It is also called a demand accounts or transactional account.

A minimum balance refer to a minimum amount that an individual must maintain their account towards receiving some service benefit. Some of the benefit is that, individual account will not be dormant and interest can also be added to the minimum balance. However, some banks won’t charge service maintenance fee on account of customers that maintain a minimum balance. For many banks, minimum balances ranges from $500 to $1000. It can also be more in some cases. Any customers that fall below the required minimum balances would certainly not qualify for those benefits.

Therefore, the correct answer is option A.

KEYWORDS:

• minimum balance
• checking account
• maximum balance
• bank account
• financial institution

Answer 2

A is the correct answer.

It is Maximum balance service fee due to a fee on the minimum balance. This means one has to maintain, although there is no limit on the Maximum Balance Service Fee.