Question

You have just moved to a new town and are trying to select a bank. Bank A offers a checking account for only $25 per month and requires you to keep a minimum balance of $100 in your account.

Bank A also charges an overdraft fee of $20, offers the use of a debit card at no charge, and assesses an ATM fee of $2.50 per use.

Bank B offers a checking account for only $19 per month and requires you to keep a minimum balance of $50 in your account.
Bank B also charges an overdraft fee of $20, offers the use of a debit card for $0.20 per transaction, and assesses an ATM fee of $3 per use. If you typically have a balance of $250 in your account, use your debit card 25 times per month, and use the ATM four times, which bank would be less expensive over time?

Answer 1

Bank A would cost 305 dollars and Bank B would cost 306 dollars.

Bank A would be less expensive

Answer 2

Bank A cost- $305
Bank B cost- $306