Part II: Calculate the Fees
It’s never a good feeling to find out that you spent MORE money than you had available, then getting a fee added on top of that overspending! In this section, you will practice calculating the fees associated with overspending.
Joshua has a checking account at Grand Spire National Bank. Grand Spire has three options when an account goes below zero:
Option 1 - No Overdraft Service: The bank will decline any transaction that exceeds the available balance. This includes ATM, one time debit card and recurring debit transactions. A NSF Fee of $35 will be charged for each check or eCheck/ACH transaction (the digital equivalent of a check) that is declined.
Option 2 - Overdraft Coverage: All transactions that exceed an available balance will be accepted. A $35 fee will be charged for each transaction (including checks) that exceeds the available balance. You can be charged up to 3 overdraft fees per day.
Option 3 - Overdraft Protection: All transactions that exceed an available balance will be accepted. Money will be transferred in $50 increments from a linked Grand Spire savings account. A $10 transfer fee will be applied to each transfer.
Joshua’s Day
When the day begins, Joshua has $116 in his checking account $200 in his linked savings account
Before school he buys his cousin a round trip bus fare for $4 using his debit card
He then uses the card to get gas in his car for $43
Once the banks open, a check he gave the school for his senior yearbook clears, and $75 comes out of his account
Joshua’s Netflix account subscription is automatically charged to his debit card today, too, so another $10 leaves the account
After school he heads out with friends and uses his debit card to buy a $3 coffee
His $40 cell phone bill that is paid with an eCheck is withdrawn
Finally, he finishes out the day with some shopping to buy new soccer gear for $25 using his debit card at the store
