To determine which bank account is best for Jana based on her financial habits and the terms provided, here is a step-by-step analysis:
1. Initial Balance and Monthly Balance:
- Jana's initial balance: [tex]$100
- Monthly balance she can maintain: $[/tex]300
- Therefore, her total balance available for consideration in any month is [tex]\( \$100 + \$300 = \$400 \)[/tex].
2. Bank Account Requirements and Fees:
- Account A:
- Minimum Balance: [tex]$500
- Interest Rate: 0.2%
- Overdraw Fees: $[/tex]0 with linked savings or [tex]$40 per overdraft
- ATM Fees: $[/tex]0 for all ATMs
- Monthly Fee: [tex]$10 or $[/tex]0 with direct deposit
Jana's total balance ([tex]$400) is less than the required minimum balance ($[/tex]500), so she would not qualify for Account A without facing monthly maintenance fees.
- Account B:
- Minimum Balance: [tex]$250
- Interest Rate: 0%
- Overdraw Fees: $[/tex]35 per overdraft
- ATM Fees: [tex]$0 for ABC bank ATMs, $[/tex]1-[tex]$3 for non-ABC bank ATMs
- Monthly Fee: $[/tex]0
Jana's total balance ([tex]$400) is greater than the required minimum balance ($[/tex]250), so she would qualify for Account B and would not face any monthly fees. She also saves on ATM fees if she uses ABC bank ATMs. This account looks promising.
- Account C:
- Minimum Balance: [tex]$100
- Interest Rate: 0%
- Overdraw Fees: $[/tex]25 per overdraft
- ATM Fees: [tex]$3 per transaction
- Monthly Fee: $[/tex]0
Jana's total balance ([tex]$400) is greater than the required minimum balance ($[/tex]100), so she would qualify for Account C and would not face any monthly fees. However, she frequently uses ATMs, and this account has a [tex]$3 fee per ATM transaction, which could add up for her.
- Account D:
- Minimum Balance: $[/tex]1000
- Interest Rate: 0.2%
- Overdraw Fees: [tex]$40 per overdraft
- ATM Fees: $[/tex]2.50 per transaction
- Monthly Fee: [tex]$7 or $[/tex]0 with a linked savings
Jana's total balance ([tex]$400) is significantly less than the minimum balance required ($[/tex]1000), so she would not qualify for Account D without incurring additional monthly fees and potential fees for ATM usage.
3. Conclusion:
- Evaluating all the accounts based on her ability to maintain the necessary minimum balance, the risk of incurring fees, and the cost of ATM transactions:
- Account A is not suitable due to the high minimum balance requirement.
- Account C might incur significant costs due to her frequent ATM usage.
- Account D has too high a minimum balance requirement for Jana to meet.
Based on this analysis, Account B is the best option for Jana. It has no monthly fee, she meets the minimum balance requirement, and she can avoid ATM fees by using ABC bank ATMs.
