Question

Henry is moving and needs to open a new checking account. He is trying to decide between three banks using the chart below:

Bank X
Bank Y
Bank Z
No monthly fees if balance stays above $500, otherwise $7 per month
No monthly fees if check card is used less than 6 times per month
$5 monthly fee
No minimum balance
$25 minimum balance
No minimum balance
Online banking services
Online banking services
Online banking services
Non-Bank X ATM fee - $2.00 per transaction
Non-Bank Y ATM fee - $1.50 per transaction
Non-Bank Z ATM fee - $2.00 per transaction

Henry usually has about $300 in his account at any given time during the month. He limits his ATM visits to one per week and is interested in banking online options. Bank X and Bank Z have 5 ATMs within a 5 mile radius of Henry’s work and his new home. Which bank should he choose?

Answer 1

Answer: Based on the information provided, Bank Y is the best option for Henry. Although Bank Y has a $25 minimum balance requirement, Henry only usually has $300 in his account, so this will not be a problem. Furthermore, Bank Y has no monthly fees as long as Henry uses his check card less than 6 times per month, which he is likely to do. Additionally, Bank Y offers online banking services, which Henry is interested in.

Bank X has a monthly fee of $7 if the balance stays below $500, which Henry is likely to incur as he usually only has $300 in his account. Bank Z has a $5 monthly fee regardless of the balance, which is not ideal for Henry.

In terms of ATM fees, Bank Y has the lowest fee at $1.50 per transaction, which is lower than the fees charged by Bank X and Bank Z.

So, based on the information provided, Bank Y is the best option for Henry.

Explanation: