Ethan is looking for a financial institution that will meet his needs. He has a part-time job and routinely puts 25% of each paycheck into a joint savings account he has with his parents. His ultimate goal is to buy a car, but he also wants access to his money so he can pay for clothes, school activities, and fuel. His savings account only allows three withdrawals per month without a penalty fee. Ethan wants to open his own checking account so he has easier access to his money. Review the table of fees for Local City Bank and Federal Credit Union (FCU). Which statements are true? Select all that apply.
Local City Bank FCU
Free Checking/Transactions Yes, with a minimum balance of $500.00 Yes, with a minimum balance of $100.00
Overdraft Fee $25.00 per overdraft $20.00 per overdraft
Savings Account Interest 1% compounded annually 1% compounded monthly
Online Banking Availability Yes Yes
ATM Fees 10 free, then $1.50 at any ATM Free at FCU ATM; $2.00 at a non-FCU ATM
Line of Credit 1% interest and $35.00 fee 2% interest and $40.00 fee
The total cost of using FCU is more than the cost of using Local City Bank
Overdraft protection will cost more at Local City Bank
Ethan's savings will grow faster in FCU.
The line of credit option is better at Local City Bank.
FCU does not charge for cash withdrawals at any ATM.
An ending balance of \(\$200.001) at Local City Bank will incur no fees.
Both financial institutions allow online banking.
FCU offers a better option for checks/transactions.