Banking Project Business Math

Which Bank Account is Best

Scenario

A good friend, Jimmy, has just asked your advice now that you are taking business math. He has never had a bank account of any kind before but he now has a steady part-time job while he attends college. He doesn't really understand the differences among the various types of bank accounts. He would like you to explain the various types of accounts to him and help him pick the bank that will give him the best deal. You ask Jimmy some pertinent questions and find out the following about his situation and his needs.

• Jimmy will take home about $250 per week from this new job. He does have the option of having his pay check deposited electronically but isn't sure if that's important or not.
• He has two monthly bills: cell phone (about $50) and car payment ($199). Up to now he gave his mother whatever cash he could for these bills and his mother has written a check, making up the difference when necessary. Now that he has a better, more steady job Jimmy has to take full responsibility for the payments. These bills can be paid online or by check.
• He hopes to save at least $25 per week to help out with his next year's tuition.
• Jimmy doesn't want to carry a lot of cash around with him and would like to both use a debit card for purchases and access an ATM when he needs cash.
• He doesn't think he would need to visit the bank to conduct any other business.
• Jimmy has Internet access and is comfortable being online.

What You Have to Do

1.      Download the bank comparison worksheet from this site. Save the document with the filename lastnamefirstinitial__P1. For example, Maria Gonzalez would save the file as gonzalezm_worksheet_P1. Remember the file must be saved as a WORD or Rich Text file. When you open the worksheet be sure to put a heading at the top with your name and the project title.

2.      Visit two different banks either in person or by reviewing their website. Get information on the different types of checking and savings accounts they offer. If they offer more than one type of each account be sure ot get information on all of them.  Be sure to record all the information you need to list your sources properly. Be sure to give the name of the bank you visited, the date, and the name and title of the person you spoke with in your list of references. If it was a web search be sure to get the exact URL and record the date you accessed the site.

3.      Complete the information in the worksheet for all of the accounts offered by the two banks. Copy the table as many times as you need to have enough spaces for all the accounts. Do not just say yes to a particular question; give details. For example, if there is a minimum amount required to open the account give the amount required. If the account pays interest give the rate and compounding period.

4.      Based on your research write up an analysis for Jimmy as to which account or accounts are best for his needs. Explain why in detail. Be sure to write in complete sentences.

5.      Now analyze your own banking needs. Based on your needs and the accounts offered by the banks you researched what account or accounts are best for you. Explain why in detail. Be sure to write in complete sentences.

6.      Money in checking accounts are referred to as demand deposits whereas savings are called time deposits. Do some research and find out the distinction. Write up a brief explanation. Use your own words. Do not copy and paste what you find.

7.      Do not create a new file to answer these questions. Add them to your worksheet file. (Be sure you have named the file with with the filename your lastnamefirstinitial__P1.)

8.      Include a Reference List giving all sources you consulted for this project. If you are not sure how to properly cite your references see http://www.bergen.edu/pages/2306.asp. (Note: The BCC English Department uses MLA format. You may use MLA, APA, or Chicago style but you must be consistent in your usage.)

9.      Attach your file(s) to the drop box for either Project_1  by the deadline, by clicking on the Assignment icon in the Action Menu or under Course tools.

You can upload the file.