Which checking account would be best for Becca?
| | Minimum Balance | Online banking | Check Limits | ATM Fees | Monthly Fee |
|---|-----------------|----------------|-----------------------|---------------------------|---------------------------|
| A | $500 | yes | unlimited | $0 for all ATMs | $12 |
| B | $250 | yes | 15 per month | $0 for ABC bank ATMs | $10 |
| C | $50 | yes | $0.08 each | $2.50 per transaction | $0 with direct deposit |
| D | $100 | no | over 10 $0.12 each | $3 per transaction | $2 |
A. Account A
B. Account B
C. Account C
D. Account D
Answer (2)
Account A has a $12 monthly fee.
Account B has a $10 monthly fee if Becca writes less than 15 checks and uses ABC bank ATMs.
Account C has a $0 monthly fee with direct deposit but charges per check and ATM transaction.
Account D has a $2 monthly fee and charges for checks over 10 and ATM transactions.
Without specific information about Becca's banking habits, Account C is the best option if she has direct deposit, writes a lot of checks and uses ATMs.
Therefore, the best account for Becca is \boxed{Account C}.
Explanation
Analyzing the Accounts To determine the best checking account for Becca, we need to consider her banking habits and compare the costs associated with each account. Since we don't have specific information about Becca's banking habits (average monthly balance, number of checks written per month, ATM usage, and whether she can set up direct deposit), we'll analyze each account based on different scenarios. Let's start by outlining the key features of each account.
Account Features Account A: Requires a minimum balance of $500, offers online banking, unlimited check limits, $0 ATM fees, and charges a $12 monthly fee. Account B: Requires a minimum balance of $250, offers online banking, allows 15 checks per month, $0 ATM fees for ABC bank ATMs, and charges a $10 monthly fee. Account C: Requires a minimum balance of $50, offers online banking, charges $0.08 per check, $2.50 per ATM transaction, and has no monthly fee with direct deposit. Account D: Requires a minimum balance of $100, no online banking, charges $0.12 for each check over 10, $3 per ATM transaction, and charges a $2 monthly fee.
Scenario 1: 10 Checks, 5 ATM Withdrawals, No Direct Deposit Let's consider a scenario where Becca writes 10 checks per month, uses ATMs 5 times per month (at non-ABC ATMs), maintains a balance above $500, and does not have direct deposit. Account A: $12 monthly fee. Account B: $10 monthly fee (since she writes 10 checks, which is less than 15). Account C: (10 checks * $0.08) + (5 ATM * $2.50) = $0.80 + $12.50 = $13.30 (without direct deposit, there would be an additional monthly fee, but it's not specified in the table). Account D: $2 monthly fee + (5 ATM * $3) = $2 + $15 = $17.
Scenario 2: 20 Checks, 2 ATM Withdrawals, Direct Deposit Now, let's consider a scenario where Becca writes 20 checks per month, uses ATMs 2 times per month (at non-ABC ATMs), maintains a balance above $500, and has direct deposit. Account A: $12 monthly fee. Account B: $10 monthly fee + (20-15) * 0 = $10 (since ATM fees are $0 for ABC bank ATMs, we assume she uses them). Account C: (20 checks * $0.08) + (2 ATM * $2.50) = $1.60 + $5 = $6.60 (with direct deposit). Account D: $2 monthly fee + (20-10) * $0.12 + (2 ATM * $3) = $2 + $1.20 + $6 = $9.20.
Comparing the Scenarios Based on these scenarios, Account C seems to be the most cost-effective, especially with direct deposit. However, it's important to consider the ATM fees and check costs. Account A offers unlimited checks and $0 ATM fees, but has a higher monthly fee. Account B is a good option if Becca uses ABC bank ATMs and writes fewer than 15 checks per month. Account D is generally the most expensive due to ATM fees and check costs, and it doesn't offer online banking.
Final Recommendation Without knowing Becca's specific banking habits, it's difficult to definitively say which account is best. However, if Becca can maintain a low balance, has direct deposit, and doesn't mind paying per check and per ATM transaction, Account C would be the best. If Becca prefers unlimited checks and ATM usage, Account A would be the best. If she uses ABC bank ATMs and writes fewer than 15 checks, Account B would be the best. Since the question does not provide any additional information, we will assume that Becca has direct deposit, writes a lot of checks and uses ATMs. In this case, Account C is the best.
Examples
Choosing the right bank account is similar to selecting a phone plan. You need to estimate your usage (data, calls, texts) to find the plan that best fits your needs and budget. Similarly, with bank accounts, understanding your spending habits (number of checks, ATM withdrawals, minimum balance) helps you choose the account with the lowest fees and best features for you. This careful comparison ensures you're not paying for services you don't need and that you're getting the most value from your bank.
To choose the best account for Becca, we need to consider her banking habits concerning fees, check usage, and ATM access. Account C is likely the best choice if she has direct deposit, as it provides low costs without a monthly fee. If she uses ABC bank ATMs and writes fewer than 15 checks, Account B is also a strong option.
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