Consumer Studies
Trem 3
,Contents
Consumer Studies – Study Notes ....................................................................................... 2
The Consumer ............................................................................................................... 2
Chapter 3: Banking and Payment Methods ....................................................................... 2
Chapter 4: Technology Used for Payments ..................................................................... 13
Chapter 5: Policies and Practices for Consumer Protection ............................................ 15
Housing and Interior .................................................................................................... 18
Chapter 17: Spatial Planning ......................................................................................... 18
Chapter 18: The Choice of Furniture .............................................................................. 26
Chapter 19: Evaluation Criteria for the Purchase of Furniture .......................................... 31
,📘 Consumer Studies – Study Notes
🔹 The Consumer
Chapter 3: Banking and Payment Methods
1. Banking services in South Africa
what is a bank
A bank is a financial institution that provides a safe place to store money and
offers financial services to people, businesses, and the government.
What Banks Do
• Accept deposits – people keep their money in savings or current accounts.
• Provide loans and credit – give money to borrow for buying homes, cars,
starting businesses, etc.
• Offer payment services – debit cards, credit cards, EFTs, stop orders, and
online banking.
• Protect money – keep money safe from theft or loss.
• Help manage money – give interest on savings and advice on investments.
• In short:
• A bank is a place where you can safely save, manage, borrow, and
transfer money.
2. Types of banks accounts:
1. Savings Accounts
Purpose:
• To encourage saving money safely while earning interest.
Features:
• Low minimum balance requirement.
• Pays low to moderate interest on money saved.
• Usually limited withdrawals per month.
• Comes with a bank card (ATM/debit) for access.
• Often no monthly fees or very low fees.
Advantages:
• Safe place to keep extra money.
• Earns interest.
• Easy access when needed.
• Helps develop good saving habits.
Disadvantages:
• Interest rate is lower than other investment accounts.
• Limited number of withdrawals allowed.
, Best for:
• Emergency fund
• Short-term savings goals (holidays, school fees)
2. Money Market Accounts
Purpose:
• To earn higher interest than savings accounts while still keeping money fairly
accessible.
Features:
• Higher minimum opening balance (compared to savings).
• Higher interest rates than normal savings accounts.
• Limited withdrawals allowed (some banks allow only a few per month).
• Usually includes online or ATM access.
Advantages:
• Higher returns on your money.
• Safe and fairly liquid (accessible).
• Still insured and low-risk.
Disadvantages:
• Requires a larger amount of money to open and maintain.
• Less flexible access than savings accounts.
Best for:
• Medium-term savings
• People who have extra money and want better returns than a basic savings
account
3. Fixed Deposit Accounts
Purpose:
• To lock away money for a set period and earn high interest.
Features:
• Fixed amount deposited for a fixed time (e.g. 6 months, 12 months, 3 years).
• High interest rates (higher than savings or money market).
• Cannot access money during the fixed term (or penalties apply).
• No monthly fees.
Advantages:
• Guaranteed return — interest is fixed.
• Safe investment (very low risk).
• Good for long-term savings.
Disadvantages:
• Money is locked (not flexible).
• No access to money until maturity date.
• If interest rates rise while your money is locked, you lose out.
Best for:
• Long-term goals (university, buying a car, building fund)
• Money you do not need to touch for a while
Trem 3
,Contents
Consumer Studies – Study Notes ....................................................................................... 2
The Consumer ............................................................................................................... 2
Chapter 3: Banking and Payment Methods ....................................................................... 2
Chapter 4: Technology Used for Payments ..................................................................... 13
Chapter 5: Policies and Practices for Consumer Protection ............................................ 15
Housing and Interior .................................................................................................... 18
Chapter 17: Spatial Planning ......................................................................................... 18
Chapter 18: The Choice of Furniture .............................................................................. 26
Chapter 19: Evaluation Criteria for the Purchase of Furniture .......................................... 31
,📘 Consumer Studies – Study Notes
🔹 The Consumer
Chapter 3: Banking and Payment Methods
1. Banking services in South Africa
what is a bank
A bank is a financial institution that provides a safe place to store money and
offers financial services to people, businesses, and the government.
What Banks Do
• Accept deposits – people keep their money in savings or current accounts.
• Provide loans and credit – give money to borrow for buying homes, cars,
starting businesses, etc.
• Offer payment services – debit cards, credit cards, EFTs, stop orders, and
online banking.
• Protect money – keep money safe from theft or loss.
• Help manage money – give interest on savings and advice on investments.
• In short:
• A bank is a place where you can safely save, manage, borrow, and
transfer money.
2. Types of banks accounts:
1. Savings Accounts
Purpose:
• To encourage saving money safely while earning interest.
Features:
• Low minimum balance requirement.
• Pays low to moderate interest on money saved.
• Usually limited withdrawals per month.
• Comes with a bank card (ATM/debit) for access.
• Often no monthly fees or very low fees.
Advantages:
• Safe place to keep extra money.
• Earns interest.
• Easy access when needed.
• Helps develop good saving habits.
Disadvantages:
• Interest rate is lower than other investment accounts.
• Limited number of withdrawals allowed.
, Best for:
• Emergency fund
• Short-term savings goals (holidays, school fees)
2. Money Market Accounts
Purpose:
• To earn higher interest than savings accounts while still keeping money fairly
accessible.
Features:
• Higher minimum opening balance (compared to savings).
• Higher interest rates than normal savings accounts.
• Limited withdrawals allowed (some banks allow only a few per month).
• Usually includes online or ATM access.
Advantages:
• Higher returns on your money.
• Safe and fairly liquid (accessible).
• Still insured and low-risk.
Disadvantages:
• Requires a larger amount of money to open and maintain.
• Less flexible access than savings accounts.
Best for:
• Medium-term savings
• People who have extra money and want better returns than a basic savings
account
3. Fixed Deposit Accounts
Purpose:
• To lock away money for a set period and earn high interest.
Features:
• Fixed amount deposited for a fixed time (e.g. 6 months, 12 months, 3 years).
• High interest rates (higher than savings or money market).
• Cannot access money during the fixed term (or penalties apply).
• No monthly fees.
Advantages:
• Guaranteed return — interest is fixed.
• Safe investment (very low risk).
• Good for long-term savings.
Disadvantages:
• Money is locked (not flexible).
• No access to money until maturity date.
• If interest rates rise while your money is locked, you lose out.
Best for:
• Long-term goals (university, buying a car, building fund)
• Money you do not need to touch for a while
