Question

Why is it important to carefully read and understand a financial institution’s policies when opening a savings account?

A.It helps you calculate how much money you can have in your account.
B.It helps you understand how money transfers work.
C.It helps you identify any hidden fees or penalties associated with withdrawals and transfers.
D.It helps you determine potential investment tools for retirement plans.
E.It helps you determine the maturity date associated with your basic savings account.

Answer 1

The third alternative is the most correct (C).

When opening an account with a financial institution, it is important to read the agreement and policies of the institution to be aware of all fees charged to carry out financial operations and account maintenance.

Some banks charge extra fees, often opportunistically, so it is important to thoroughly read the contract to avoid surprises and stress.

Answer 2

I believe the answer is: C.It helps you identify any hidden fees or penalties associated with withdrawals and transfers.

Companies often put the hidden fees and penalties in the middle of every argument to avoid consumers' attention from it. In policies where large amount of money is involved, it is advised for you to hire a lawyer or financial experts to read these policies in order to avoid bigger loss.