Activity 1: Press 1 to Withdraw Cash, Press 2 to Deposit, Press 3 for Higher Fees Wow! My account balance is a little lower than I expected, commented Lisa Cross as she reviewed her monthly bank statement. Wait a minute! Theres nearly $20 in fees for ATM withdrawals and other service charges. Many people do not realize the amount they pay each month for various bank fees. These charges result from various services that give customers convenience, reliability, and safety. Oh no! I also went below the minimum balance required for my free checking account, Lisa groaned. That cost me $7.50! Lisa is not alone in her frustration with fees paid for financial services. While careless money management caused many of these charges, others could have been reduced or eliminated by comparing costs at various financial institutions. Consumers are also upset with slow customer service and long waits in lines. These drawbacks have caused many customers to consider the use of online banking services. Whether using the online services of your current financial institution or starting an account with a Web bank, you can gain faster access to your account. Other benefits may be present. Often, costs of online banking services are lower than in traditional settings. Online banking can mean access to an expanded array of financial services. For example, some online bank accounts include low-cost, online investment trading and instant loan approval. Lisa believes that online banking services provide her with an opportunity to better control her financial service costs. However, she also has concerns about introductory low costs, privacy, and security of transaction information.

Questions 1. What benefits might Lisa gain when using online banking services? 2. What factors should Lisa consider when selecting various banking services? 3. What actions might you take to better understand the concerns associated with using online banking?