Question

Jane received a bank statement that indicates that she was charged a $35 insufficient funds fee. What is the possible reason the bank charged her this fee?

Answer 1

The fact that the bank charged Jane an insufficient funds fee means that Jane tried to make a transaction that the bank could not cover based on her balance.

When does a bank charge and insufficient fee?

Banks will charge an insufficient fee charge to a customer if the customer tries to make a transaction that their balance cannot cover.

This means that the account holder was trying to use more than they had with the bank and so the bank charges a penalty on this. The reason the bank does this is to penalize the customer such that they desist from engaging in such transactions.

For instance, Jane might have tried to buy a good or service that was worth $5,000 when she had only $3,000 in her account. The bank then levies the insufficient fee of $35 to cover their costs of failed transaction and to ensure that Jane is more careful in future.

Find out more on insufficient fund fees at brainly.com/question/23090570

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