Which concept describes a monthly fee charged to maintain access to an account?

Which concept describes a monthly fee charged to maintain access to an account?

• A. Direct Deposit
• B. Minimum Balance
• C. Maintenance Fee
• D. FDIC Insurance

Answer: (C)

The main idea here is identifying a charge that a bank applies regularly just to keep your account accessible, which is called a maintenance fee. This is a monthly service charge some banks apply for maintaining the account, regardless of how many transactions you make. That’s why the term maintenance fee is the best fit for describing a monthly fee to keep an account open. The other terms don’t describe this charge: Direct deposit refers to funds being electronically deposited into your account, typically by an employer. Minimum balance is the required amount you must keep in the account to avoid certain fees or to qualify for benefits, but it isn’t itself a monthly charge. FDIC insurance is protection for your deposits in the event of a bank failure, not a fee.

The main idea here is identifying a charge that a bank applies regularly just to keep your account accessible, which is called a maintenance fee. This is a monthly service charge some banks apply for maintaining the account, regardless of how many transactions you make. That’s why the term maintenance fee is the best fit for describing a monthly fee to keep an account open.

The other terms don’t describe this charge: Direct deposit refers to funds being electronically deposited into your account, typically by an employer. Minimum balance is the required amount you must keep in the account to avoid certain fees or to qualify for benefits, but it isn’t itself a monthly charge. FDIC insurance is protection for your deposits in the event of a bank failure, not a fee.