Anne is 22, just out of college, and moving to a new city for her first job. She

Question

Anne is 22, just out of college, and moving to a new city for her first job. She is concerned about her finances. She wants to start saving for an emergency fund and to buy a new car for about $24,00 in 2 years with a 20% down payment and finance the rest over 4 years. Her gross income is $40,000 and her disposable income is $31,000. Her monthly living expenses will be about $2,000 ($1,400 fixed). Her employer offers a retirement plan and a credit union. She has $5,000 in a regular checking account. Anne has started shopping around for accounts to hold her liquid assets and would like the highest rate possible as well as avoiding fees if her balance falls below a specified minimum balance. Her thought is to open 2 accounts; one for paying monthly bills and the other for short-term savings.

1. What major factors should Anne consider when selecting savings and checking accounts?

Explanation / Answer

1. Ease of deposit: Bank should have branches covering all the major cities and having its 24*7 digital kios for depositing cash

2. ATM fees: Yearly fees of ATM cards and usage policy of them

3. Interest Rate:  Interest rates work both ways: the rates you receive on your money on deposit with the bank, and the rates you pay when borrowing via credit card or loan.

4. Online Banking Features

5. Customer services

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.