ANALYZE: Overdraft Fees An overdraft occurs when you don't have enough money in your bank account to cover a transaction. To avoid fees, know how much money is in your bank account and what happens if you overspend. Part I: Calculate the Fees Joshua has a checking account at Grand Spire Mational Bank with three overdraft options. He conducts the following transactions: BB RS RS R R R R R R RS R R SRR E R R R RS R R R R AR RS BB Joshua's Day : + 1 &00am: Starts off with $116 in his checking account and $200 in his linked savings + 4 account ; + 2 730 am: Buys his cousin a round trip bus fare for $4 using his debit card + ' 3 740 am: Gets $43 of gas using his debit card . + 4 B30 am: A 375 check he wrote for his senior yearbook is deposited + g 5 9:00 am: Debit card charged monthly $10 Netflix subscription fee E 6 330 pm: Buys o $3 coffee with his debit card 7 445 pm: 540 eCheck for cell phone bill is withdrawn + 8 &30 pm: Buys new soccer gear for 325 using his debit card at the store + 1. For each overdraft option, decide if the transactions in Joshua's day are accepted or declined. Identify any fees he might be charged. Option #1: No Coverage Transactions are declined if there are not sufficient funds in the account . Fee: $35 Non Sufficient Fund (NSF) Fee for each check or eCheckACH transaction that is declined Step Transaction Outcome (Circle One] Running Balance Fee Charged Starts the day with $116 in his checking account 2 Accepted / Declined Accepted / Declined Accepted / Declined Accepted / Declined 6 Accepted / Declined Accepted / Declined Accepted / Declined Total Fees: Total Ending Balance: Option #2: Overdraft Coverage All transactions accepted Fee: $35 for each transaction (including checks) that exceeds the available balance . Limit: 3 overdraft fees per day Step Transaction Accepted (Circle One) Running Balance Fee Charged Starts the day with $116 in his checking account Accepted / Declined Accepted / Declined Accepted / Declined Accepted / Declined Accepted / Declined Accepted / Declined Accepted / Declined Total Fees: Total Ending Balance:Option #3: Overdraft Protection All transactions accepted Money will be transferred in $50 increments from a linked Grand Spire savings account Fee: A $10 transfer fee will be applied to each transfer Savings Transaction Accepted (Circle Running Step Fee Charged Account One) Balance Balance 1 Starts the day with $116 in his checking account $200 2 Accepted / Declined Accepted / Declined 4 Accepted / Declined 5 Accepted / Declined 6 Accepted / Declined 7 Accepted / Declined Accepted / Declined Total Fees: Total Ending Balance: Total Ending Savings Account Balance: Part II: Analyze the Bigger Picture 2. Which of Joshua's overdraft options minimizes fees? What are the downsides of this choice? 3. Which overdraft option makes it easiest for Joshua to know he has overdrawn his account?4. Choose one of the banks and research their overdraft policies to fill in the table below. a. Chase b. Bank of America C. Wells Fargo d. Citibank e. US Bank Bank NSF Fee Amount Overdraft Coverage Overdraft Protection Fee Fee Amount Amount 5. Which overdraft option would you choose for your checking account? Explain