A transaction fee is charged when what occurs?

A transaction fee is charged when what occurs?

• A. A fee charged for maintaining an account
• B. A fee charged for overdrafts
• C. A fee charged for each online payment
• D. A fee charged if the number of withdrawals from your savings account exceeds the federal limit, which is six free withdrawals and transfers per month

Answer: (D)

A transaction fee in this context is a charge that kicks in when you use a savings account in a way that hits a limit set by regulation. Savings accounts often have a limit of six convenient withdrawals or transfers per month. If you exceed that limit, the bank may assess a transaction fee for the excess withdrawals. That’s why the option describing a fee charged if the number of withdrawals from your savings account exceeds the federal limit is the best fit. Other fees described are different in nature: a maintenance fee is just for keeping the account open, an overdraft fee occurs when you spend more than you have, and a fee charged for each online payment is a processing charge for a specific type of transaction, not tied to the withdrawal limit from a savings account.

A transaction fee in this context is a charge that kicks in when you use a savings account in a way that hits a limit set by regulation. Savings accounts often have a limit of six convenient withdrawals or transfers per month. If you exceed that limit, the bank may assess a transaction fee for the excess withdrawals. That’s why the option describing a fee charged if the number of withdrawals from your savings account exceeds the federal limit is the best fit.

Other fees described are different in nature: a maintenance fee is just for keeping the account open, an overdraft fee occurs when you spend more than you have, and a fee charged for each online payment is a processing charge for a specific type of transaction, not tied to the withdrawal limit from a savings account.