Which term refers to a fee paid to you for keeping your money in an account OR a fee charged to you for a loan or credit card?

Which term refers to a fee paid to you for keeping your money in an account OR a fee charged to you for a loan or credit card?

• A. Low Balance Alert
• B. Interest
• C. Maintenance Fee
• D. Direct Deposit

Answer: (B)

Interest is the price of borrowing money or the return you earn on money kept in a bank. When you borrow money through a loan or use a credit card, interest is the cost charged on the outstanding balance, usually shown as an annual percentage rate. When you keep money in a savings or other deposit account, the bank pays you interest for letting them use your funds. The other terms don’t fit because a low balance alert is just a notification you set if your balance drops too low, a maintenance fee is a charge for keeping the account open, and direct deposit is an electronic transfer of funds into your account.

Interest is the price of borrowing money or the return you earn on money kept in a bank. When you borrow money through a loan or use a credit card, interest is the cost charged on the outstanding balance, usually shown as an annual percentage rate. When you keep money in a savings or other deposit account, the bank pays you interest for letting them use your funds. The other terms don’t fit because a low balance alert is just a notification you set if your balance drops too low, a maintenance fee is a charge for keeping the account open, and direct deposit is an electronic transfer of funds into your account.