Bank Exploration Julia Gleason

Cash Management Assignment
Instructions
This assignment will help you make informed decisions regarding you cash management options. Your goal is to determine the best accounts to: 1) have
no hassle/easy-to access services (convenience); 2) minimize fees (costs); 3) get personal help when you need it (consideration); 4) keep funds safe
(security); and 5) maximize interest earnings (gain). The purpose of this assignment is to compare the 5 criteria listed, between 3 Financial Institutions i.e.
a Commercial Bank, a Credit Union, and an Online Bank (this is a bank that is online only) of your choice. [Note: Use your Textbook page 49. It gives you
several options to choose from for each one of the criteria. Yes or No answers, rankings of 1, 2, 3, or “good, better, best” are UNACCEPTABLE!] Then
answer the reflection questions.
Citibank Alliant Credit Union Chime
Mobile App Available 80000 surcharge free ATMs Available Branches: none
1. Convenience 65000 surcharge free ATMS No peer-to-peer payments ATMS: 38000+ fee free
Complicated/confusing saving Mobile app All banking done online

account
Online check deposits Ability to deposit checks online
Online check deposit
Bill payments online Mobile payments
Global coverage
Kids savings accounts Ability to mail checks
Custodial accounts No cash, paper checks, or foreign

currency
$30 monthly checking account $25 Overdraft fees Overdraft Fees: none-to a limit
service fee
2. Costs No monthly serive fee for checking No minimum balance
$35 fee for insufficient funds account No foreign transaction fees
Free out-of-network ATM use No minimum balance Out-of-network fees
$100 minimun for savings

account
Customizable notifications Easy to join Daily balance notifications and

transaction alerts
3. Consideration 24/7 human customer service Program to help you qualify
No in-person communication
24/7 help number
$0 liability on unauthorized NCUA insured up to $250000 Ability to block debit card transactions
transactions
4. Security Offer many insurances FDIC insured up to $250000
Quick Lock available
2-Step authentication
FDIC insured
Savings Interest: 1.50% APY-high Savings Interes: 1.50%-high No interest
5. Gain CD Interest: 1.35% APY-low CD Interest: 1.35%-higher side Referal bonus of $50
Checking Account Interest: 1.40% Checking Accounts: 1.40%-high

APY
Reflection Questions to Answer

Answer each of the questions below based on your comparison between financial institutions i.e. commercial bank, credit union, online bank. Include your
rationale for all decisions.
1. Convenience: What conveniences from this comparison are most important to you? Which financial institution would you choose for how
convenient it is to work with?
Because I will most likely be traveling back and forth a lot from Canada, USA, and other countries in my circumstances, it is important for me to have
available banking anywhere I go. I think for this reason I would choose a credit union. That way I could have online banking with some of the conviences of
a commercial bank.
2. Cost: Which is more important to you: low costs, low fees, or both? Why? Which financial institution would you choose to have low costs? low
fees? Both?
For me, low fees are the most important. I would rather pay an upfront higher cost because I am never sure what the future of my finances will be. For the
lowest of all fees, I would choose an online account, because they do not have the price of buldings to pay for, so their fees are signifacntly less.
3. Consideration: Which financial institution would you choose for personalized financial advice and attention to detail? Do you have an unusual
financial situation that would be better handled by a person than a rule?
As nice as it would be to have an in-person associate to work with, it is more important to me to be able to bank online. I would prefer to have a bank that
I can communicate with someone over the phone. I like that Citibank has a 24/7 line for human customer service, but I would settle for a less available one
if that was the difference between international availably or not.
4. Security: Are the above financial institutions insured by FDIC or NCUA? What does FDIC/NCUA insured mean? What does it provide for
consumers? What would happen if someone had more than $250,000 (or $500,000 if a join depositor) in one account?
The FDIC/NCUA insurance means that if the bank does not have enough money to pay you, you can still receive funds back for up to $250,000. If you are
going to put in more than that, I would suggest to consider other options like joint depositing or multiple accounts. For me, I would want to make sure my
bank was insured.
5. Gain: Which financial institution paid interest on your checking account? How important is earning interest on a checking account to you? Why or
why not? On your savings account? Why or why not?
Both the commercial bank and credit union offer equal rates. The online bank offers no interest whatsoever. If it is just for an emergency fund I have,
interest is not as important. However, if I am doing most of my banking with the bank, I would prefer commercial or credit union.
6. Importance: Rank the factors you are researching (interest rates, fees, etc). What is most important to you, or not important to you? Why? Given
all the research you did, which institution do you feel best meets your current needs?
For me, the most important feature is the availability to international banking. This is because I will be traveling a lot. The second most important think to
me is security. This is so that I don’t have to worry about my money. Next would be low fees and high interest rates. It would be nice to not only not lose
money in banking, but to gain a bit. The lest important thing to me is in person banking, as long as there is a number to call and ATMs available.
What to Submit
Edit and proofread your work. Save this completed worksheet to your computer. Return to I-Learn to submit this document for grading.

Bank Exploration Julia Gleason

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Cash Management Assignment

Citibank Alliant Credit Union Chime

Complicated/confusing saving Mobile app All banking done online

Custodial accounts No cash, paper checks, or foreign

Free out-of-network ATM use No minimum balance Out-of-network fees

$100 minimun for savings

Customizable notifications Easy to join Daily balance notifications and

Savings Interest: 1.50% APY-high Savings Interes: 1.50%-high No interest

Checking Account Interest: 1.40% Checking Accounts: 1.40%-high

Reflection Questions to Answer

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