4-6 Online Banking, Slide 1 of 16

The objective of this sections is to compute the online banking charges and then to update the check register

4-6 Online Banking, Slide 2 of 16

online banking

Doing bank transactions, such as loan payments and funds transfers, electronically over the Internet.

Key Words to Know

4-6 Online Banking, Slide 3 of 16

What are some advantages and disadvantages of doing online banking?

4-6 Online Banking, Slide 4 of 16

Total Fees =

Basic Charge

+ Bill Payments

+ Statement

+ ATM Surcharge

+ Cash Advance Fee

Formula

4-6 Online Banking, Slide 5 of 16

Tiwana uses the online banking plan shown below. She pays the basic charge, 7 bills, plus she requests a printed statement. She also has ATM transactions, including 1 out-of-network, and a cash advance of $400.00. What are her total fees for the month?

Example 1

4-6 Online Banking, Slide 6 of 16

• 7 bills• printed

statement• ATM

transactions, 1 out-of-network

• cash advance

of $400.00.

4-6 Online Banking, Slide 7 of 16

Basic Charge + Bill Payments + Statement

+ ATM Surcharge + Cash Advance Fee

$6.95 + $0.50 (7-5) + $4.00 + $3.00

+ (2% × $400)

$6.95 + $1.00 + $4.00 + $3.00 +

$8.00 =

$22.95

Example 1 Answer

4-6 Online Banking, Slide 8 of 16

Calculate the fees.

Service: Basic charge, 11 bills paid, printed statement, International wire transfer.

ATM: 2 regional, 1 national, $700 cash advance online banking fee?

Practice 1

4-6 Online Banking, Slide 9 of 16

$47.95

Practice 1 Answer

4-6 Online Banking, Slide 10 of 16

When you bank online, you still need to maintain a check register to keep a record of your finances. One feature of online banking is that you can download your current online transactions. Most people put the information into a computer program to maintain a current check register.

4-6 Online Banking, Slide 11 of 16

Tiwana downloaded her transactions so that she could update her spreadsheet.

4-6 Online Banking, Slide 12 of 16

4-6 Online Banking, Slide 13 of 16

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