Banking and payment methods:
Financial Intelligence Centre Act (FICA) designed to prevent fraud and money laundering
this is why consumer has to have an SA bar-coded ID book and Proof of residence
Types of bank accounts: choose bank account that meets your needs, shop around
1. Savings account: min of R50.00 to open
- bank/debit card be used at ATM and at retailers. Very low interest rates
2. Current or cheque account:
- Bank card used ad ATM and a debit card at retailers
- Have overdraft facility
- Charged interest on overdraft facility
- Very little interest earned on money in acc
3. Fixed Deposit accounts:
- Special savings account offers higher interest rate as money is deposited in
bank for a set period of time
4. Call account:
- Like a savings account, but min amount in account is higher. The more
money in the account the more interest you will earn
5. Money market account:
- Minimum opening account
- More money=more interest
- Charge withdraw money
- Deposits of fee
Bank charges:
Bank charges a fee for services:
- Managing the account
- Depositing or withdrawing the money
- Stop orders or debit orders
- Overdraft facility
- Lost card protection fee
Reduce bank charges:
- Use debit card facility rather than drawing cash
- ATM,internet and cellphone banking is cheaper than going to a teller
- Use your banks ATM
- Avoid going into debt
Methods of purchasing goods and services:
Cash transactions
1. Cash transactions= pay cash, internet transfer, or use card to pay for goods
- Dangerous method, no paper trail, immediate and ideal for small
purchases
2. Internet payments= EFT, electronic fund transfer
Financial Intelligence Centre Act (FICA) designed to prevent fraud and money laundering
this is why consumer has to have an SA bar-coded ID book and Proof of residence
Types of bank accounts: choose bank account that meets your needs, shop around
1. Savings account: min of R50.00 to open
- bank/debit card be used at ATM and at retailers. Very low interest rates
2. Current or cheque account:
- Bank card used ad ATM and a debit card at retailers
- Have overdraft facility
- Charged interest on overdraft facility
- Very little interest earned on money in acc
3. Fixed Deposit accounts:
- Special savings account offers higher interest rate as money is deposited in
bank for a set period of time
4. Call account:
- Like a savings account, but min amount in account is higher. The more
money in the account the more interest you will earn
5. Money market account:
- Minimum opening account
- More money=more interest
- Charge withdraw money
- Deposits of fee
Bank charges:
Bank charges a fee for services:
- Managing the account
- Depositing or withdrawing the money
- Stop orders or debit orders
- Overdraft facility
- Lost card protection fee
Reduce bank charges:
- Use debit card facility rather than drawing cash
- ATM,internet and cellphone banking is cheaper than going to a teller
- Use your banks ATM
- Avoid going into debt
Methods of purchasing goods and services:
Cash transactions
1. Cash transactions= pay cash, internet transfer, or use card to pay for goods
- Dangerous method, no paper trail, immediate and ideal for small
purchases
2. Internet payments= EFT, electronic fund transfer
