Mathematical Literacy Level 2 Module 11

Mathematical Literacy NQF 2 Downloaded from hlayiso.com Maths Lit NQF Level 2

Reading and interpreting bank information Module 11 Downloaded from hlayiso.com Maths Lit NQF Level 2

Overview 11.1 Bank accounts for personal use 11.2 Read and interpret bank statements and fees brochures Downloaded from hlayiso.com Maths Lit NQF Level 2

Reading and interpreting bank information Which bank? Unit 11.1 What type of account? Choosing a bank • Does the bank have an account type and services suited to my needs? • Does the bank have a branch close by that I can access easily? • Are there ATMs close enough for my purposes? • Are the banking charges and information about how to keep the banking fees low clearly stated? Downloaded from hlayiso.com Maths Lit NQF Level 2

Types of bank accounts Unit 11.1 • The type of account you choose is based on: 1 The fees and charges 2 The minimum and maximum balances 3 The types of transactions available on the account type. • There are basically two types of transactional account available today. • Current or Cheque account and Savings account Downloaded from hlayiso.com Maths Lit NQF Level 2

Transactional bank accounts Unit 11.1 Downloaded from hlayiso.com Maths Lit NQF Level 2

Transactional bank accounts Unit 11.1 Downloaded from hlayiso.com Maths Lit NQF Level 2

Transactional bank accounts Unit 11.1 Downloaded from hlayiso.com Maths Lit NQF Level 2

Transactional bank accounts Unit 11.1 Downloaded from hlayiso.com Maths Lit NQF Level 2

Debit card Unit 11.1 Description A debit card is usually issued for any transactional account. The cardholder can withdraw money at an ATM or at the till at most supermarkets. ” • It is linked to your cheque or savings account and the amount swiped or withdrawn is deducted immediately from the account to which the card is linked. Note: The debit card must not be confused with a credit card. They are two different types of transaction cards. Downloaded from hlayiso.com Maths Lit NQF Level 2

Credit card account Unit 11.1 Description This account is often opened as an additional benefit to a cheque account. The amount of credit granted depends on the risk profile of the account holder. • All purchases made on a credit card account become debt owed. ” • The interest payable is much higher than for some other forms of credit. • The amount owing is repayable over six or twelve months, which makes the account expensive to maintain. Downloaded from hlayiso.com Maths Lit NQF Level 2

Case study Unit 11.1 Complete Case study on page 208 of your Student’s Book Downloaded from hlayiso.com Maths Lit NQF Level 2

What you need to open a bank account Unit 11.1 This is part of an application form for a bank account. Downloaded from hlayiso.com Maths Lit NQF Level 2

What you need to open a bank account Unit 11.1 • The Financial Intelligence Centre Act, 38 of 2001, abbreviated to “FICA” requires every person opening a bank account to provide the bank with: i. a bar-coded Identity document ii. proof of residence iii. a source of primary income, e.g. salary, rental income, etc. • FICA regulations are necessary to prevent money laundering (the abuse of financial systems to hide or disguise the proceeds of crime). Downloaded from hlayiso.com Maths Lit NQF Level 2

Banking forms Unit 11.1 • Most banking today takes place via the internet and ATMs. There is not much need for bank forms. • Cheques will soon become a thing of the past. Some companies do not accept cheques anymore. • A cheque is only valid for a limited time period and once expired is referred to as being stale and no longer valid. Downloaded from hlayiso.com Maths Lit NQF Level 2

Cheques Unit 11.1 Downloaded from hlayiso.com Maths Lit NQF Level 2

The deposit slip Unit 11.1 Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 11.1 page 212 Unit 11.1 Carl Pieterse works for Sterling Plumbers. The company has an account with SB Bank, Rosettenville Branch. The branch code is 53111 and the account number is 98445522100. On 23 August 2017 his employer sends him to the bank to do some deposits. He deposits the following: • 8 × R100 notes, 3 × R50 notes, 2 × R20 notes, 7 × R5 coins, 14 × R2 coins, 30 × 20c coins, 5 × 10c coins • A cheque for R544,60 from Pioneer Bank Clerewood branch, in the name of M. Mbabane. • A cheque for R1 744,50 from Savvy Bank in the name of P. Toerien. Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 11.1 page 212 continued ... Unit 11.1 • Use this information to complete the deposit slip provided. Write down what you would fill in for A–S. Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 11.1 page 212 continued ... Unit 11.1 A. Sterling Plumbers B. 53111 C. 98445522100 D. D. Pieterse E. (8 × R100 notes) + (3 × R50 notes) + (2 × R20 notes) = R800 + R150 + R40 = R990 (7 × R5 coins) + (14 × R2 coins) + (30 × 20c coins) + (5 × 10c coins) = R35 + R28 + R6 + R0,50 F. R69 G. 50c H. R1 059 I. 50c J. M. Mbabane K. Pioneer Bank L. 544 M. 60c N. P. Toerien O. Savvy Bank P. 1 744 Q. 50c R. R2 289,10 S. R3 348,60 Downloaded from hlayiso.com Maths Lit NQF Level 2

Exercise 11.1 Unit 11.1 Complete Exercise 11.1 on page 213 of your Student’s Book Downloaded from hlayiso.com Maths Lit NQF Level 2

Read and interpret bank statements Unit 11.2 and fees brochures A bank statement is a record of all transactions on a bank account. Internet banking and EFTs (electronic funds transfer) are recorded online, so banks only issue statements when you ask. Most bank statements have the same format: • Transaction date • Type of transaction • Description of transaction • Credit transaction • Debit transaction • Balance on the account after each transaction. Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 11.2 page 214 Unit 11.2 • Petrus printed out this bank statement from the internet. Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 11.2 page 214 continued ... Unit 11.2 a) At which branch does Petrus bank? b) Write down the branch code he uses on transactions. c) For which dates did Petrus request a statement? Name the opening and closing dates of the statement. d) Explain what the debits are. e) The opening balance is not given on this statement. Calculate what it would have been. f) How much did Petrus pay in banking charges this month? Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 11.2 page 214 continued ... Unit 11.2 a) Epping Heights branch b) Branch code 5643 c) The transactions are from 31 August 2018 to 15 September 2018. d) The debits are all the amounts that were paid to other people or businesses. The account was debited each time. e) R1 020 – R1 000 = R20. The opening balance would have been R20. f) R28 Downloaded from hlayiso.com Maths Lit NQF Level 2

Bank fees Unit 11.2 • Banks charge their clients for all services. • Some banks have a high monthly charge and do not charge for individual transactions. Other banks have a low monthly charge, but charge for individual transactions. • A good way to save is to always use your own bank’s ATM machines. All banks charge more when you use a different bank’s ATM. • Different types of bank accounts also have different charge structures. • You can use an independent online website to compare the fees of different banks. Downloaded from hlayiso.com Maths Lit NQF Level 2

Exercise 11.2 Unit 11.2 Complete Exercise 11.2 on page 215 of your Student’s Book Downloaded from hlayiso.com Maths Lit NQF Level 2

Module assessment Module 11 Complete Module assessment on page 218 of your Student’s Book. Downloaded from hlayiso.com Maths Lit NQF Level 2

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