Payment Account Cost Analysis
Purpose: To compare the inflows and outflows of a checking account. (pp.159-164)
Instructions: Record the interest earned (inflows) and thecosts and fees (outflows) as requested below. Note: Not all item will apply to every checking account.
Suggested Web sites: www.bankrate.com www.checkfree.com
Inflows(earnings) Outflows(costs)
Step 1 Step 2
Multiply average monthly Monthly service charge
Balance $____________ $__________ * 12= $_____
By average rate of return Average number of checks written per
____________ % to determine month________* charge per
Annual earning check (if applicable) * 12= $______
Average number of deposits per
Month_______*charge per deposit
(If applicable)*12= $__________
Fee incurred when going below minimum
Balance_______*time below
Minimum = $__________
Lost interest: opportunity cost
_________% * required minimum
Balance $______ = $__________