Banking Products & Customer Service Flashcards

A customer wants to earn interest while maintaining easy access to funds for emergencies. Which product best meets this need?

Answer: Money Market Account

Money market accounts offer competitive interest rates with liquidity, typically allowing limited monthly withdrawals.

Under Regulation E, how many business days does a bank have to investigate and resolve a consumer's unauthorized electronic fund transfer complaint after receiving notice?

Answer: 10 business days

Reg E requires banks to investigate unauthorized EFT claims within 10 business days, or provisionally credit the account and extend to 45 days.

Which feature distinguishes a Home Equity Line of Credit (HELOC) from a Home Equity Loan?

Answer: HELOC has a variable interest rate during the draw period

HELOCs function as revolving credit with variable rates during the draw period, unlike home equity loans which have fixed rates and lump-sum disbursement.

A customer complains that an ATM dispensed $100 less than requested but the account was debited for the full amount. What is this called?

Answer: ATM dispense error

An ATM dispense error occurs when the machine fails to deliver the full requested amount, requiring a dispute investigation.

Which savings vehicle offers a guaranteed fixed return and is FDIC-insured but penalizes early withdrawal?

Answer: Certificate of Deposit

CDs offer guaranteed fixed rates and FDIC insurance but impose an early withdrawal penalty if funds are accessed before maturity.

A retail banker should recommend an overdraft protection transfer from a linked savings account primarily because it:

Answer: Typically costs less than a standard overdraft fee per occurrence

Overdraft protection transfers usually incur a small transfer fee, which is typically lower than the standard NSF/overdraft fee charged per item.

When cross-selling banking products, which practice is considered a violation of ethical sales standards?

Answer: Opening accounts for customers without their knowledge or consent

Opening accounts without customer consent is unauthorized and unethical, as highlighted by major industry enforcement actions.