1. SECTION 4-6 pp
Online Banking

2. Section Objective Compute: online banking charges Update:
the check register

3. Key Words to Know online banking (p. 182)
Doing bank transactions, such as loan payments and funds transfers, electronically over the Internet.

4. Formula
Total Fees = Basic Charge + Bill Payments + Statement ATM Surcharge + Cash Advance Fee

5. Fleet Footed Finances p. 182
How might online banking affect Pinsky’s knowledge of the money in Fleet Footed’s bank account?

6. Example 1
Tiwana Gombash uses the online banking plan shown below. She pays the basic charge, 7 bills, plus she requests a printed statement. She also has ATM transactions, including 1 out-of-network, and a cash advance of $
What are her total fees for the month?

7. Figure 4.14

8. Example 1 Answer Step: Add the fees.
Basic Charge + Bill Payments + Statement + ATM Surcharge + Cash Advance Fee
$ $0.50 (7-5) + $ $ (2% × $400)
$ $ $ $ $8.00 = $22.95

9. Practice 1
Use Tiwana Gombash’s online banking plan above to calculate the fees.
Service: Basic charge, 11 bills paid, printed statement, International wire transfer.
ATM: 2 regional, 1 national, $700 cash advance online banking fee?

10. Practice 1 Answer
$47.95

11. Practice 2
Use Tiwana Gombash’s online banking plan above to calculate the fees.
Service: Basic charge, 18 bills, 1 overdraft.
ATM: 4 national, 2 out of network, cash advance of $200.

12. Practice 2 Answer
$56.45

13. END OF SECTION 4-6
Online Banking