To determine which checking account would be best for Kylie, we need to evaluate the terms and conditions of each account based on her needs and the associated fees. Let's review each account in detail considering the initial balance of \[tex]$500 she plans to deposit.
### Account A
- Overdraft Protection: Yes
- ATM Fees: \$[/tex]0
- Monthly Fee: \[tex]$0
Since Kylie sometimes writes checks for more money than she has, overdraft protection is beneficial. Moreover, there are no ATM fees and no monthly fees, making this account very cost-effective for her with no additional costs involved.
### Account B
- Overdraft Protection: No
- ATM Fees: \$[/tex]0 (for certain ATMs)
- Monthly Fee: \[tex]$5
This account does not offer overdraft protection, which may impose a risk of incurring fees for insufficient funds. Additionally, Kylie would incur a monthly fee of \$[/tex]5, totaling \[tex]$60 per year. Considering her regular usage involves only her bank's ATM, there are no ATM fees, but the monthly fee makes it less attractive.
### Account C
- Overdraft Protection: No
- ATM Fees: \$[/tex]2 per transaction
- Monthly Fee: \[tex]$10 (or \$[/tex]0 with direct deposit)
This account would charge Kylie \[tex]$2 per ATM transaction, which would add up quickly. There is a substantial monthly fee of \$[/tex]10, but it could be waived with a direct deposit. Assuming Kylie sets up direct deposit to waive the monthly fee, she can avoid the monthly cost. However, the ATM fees still make it costlier if she frequently uses the ATM.
### Account D
- Overdraft Protection: No
- ATM Fees: \[tex]$0 (per transaction)
- Monthly Fee: \$[/tex]5 (or \[tex]$0 with direct deposit)
This account has no ATM transaction fees and offers the possibility to waive the monthly fee with direct deposit. However, as with Account B, there is no overdraft protection.
### Summary
1. Account A: Overdraft protection, no fees for ATMs, no monthly fee.
2. Account B: No overdraft protection, no fees for certain ATMs, \$[/tex]5 monthly fee.
3. Account C: No overdraft protection, \[tex]$2 ATM fee per transaction, \$[/tex]10 monthly fee (waivable with direct deposit).
4. Account D: No overdraft protection, no ATM fees, \$5 monthly fee (waivable with direct deposit).
Based on the analysis, Account A clearly stands out as the best option for Kylie. It provides overdraft protection, which is crucial due to her occasional tendency to write checks for more than her balance. Moreover, Account A has no ATM fees and no monthly fees, making it the most cost-effective and financially secure choice.
Therefore, Account A would be the best checking account for Kylie.
