[Music] in this segment we're going to look at something called banking fees what are banking fees let's read this banks charge fees for the services that they provide okay but let's say i've got a bank account and let's say in this bank account and i'm going to dream big okay let's pretend i've got twenty thousand rand in this bank account i then go off to the bank and i say listen guys i need a thousand rent cash okay so the woman behind the tools is cool full in this form are full in the form she stamps she well we stamped everything gets stepped stem stem stem stem stem and then counts out a thousand rant so i say cool so they're taking out a thousand rand and so in my account i should have 19 000 ram okay i go to an atm later and i say i want to check if this bank is doing their job right put in a balance and suddenly to my horror i see that my balance is 18 930 rand 70 rand has gone missing it should be 19 000 it's now 18 930 what happened to my 70 ram so i go back into the bank and i say listen those you need to use a calculator abri twenty thousand minus a thousand should be nineteen thousand not eighteen thousand nine hundred and thirty what are you doing to my back and they can turn around and say listen beaky you've forgotten something every time you put money into our bank we charge you for that every time you take money out we charge you for that and that charge is something which we call bank fees okay now i'm going to look at the following here and i just want us to look at this table transactions okay so different transactions transactions are activities that you perform within your account and we'll look at them in more detail and then the fee because you get charged for things so monthly fees monthly maintenance fee just for having your bank they're going to charge you five rand every single month okay ish self-service banking subscription fee they're charging you another 15 rand deposits what's deposit deposits when you put money into your account okay if you do it over the counter okay or um at negoli bank right they're going to charge you five rand if you do a check over the account or a negoli bank atm it's gonna be free cash withdrawals when i take money out if i go accountant i take out money they're going to charge me 10 rent just for doing that if i go to a negoli bank atm they're going to charge me 5 rand for taking up my own money it seems a bit of a cheat if i go to another bank's atm seven rand is what they're gonna charge me if i go to a tool point and i say to them hazard i'm here okay i'd like to draw money because nowadays you can do that hey you can go to tool and you can with your bank card and say please can i draw money right and this bank which is called igoli bank okay we just made up the bank's name all right um so that we're not running down any bank they saying at a till point they're going to charge you a rant if you're buying it with purchase i go to the bank or go to a shop and i say cool i'm buying a bottle of water and i'm buying a packet of chips great oh yeah by the way i also want to draw money they're going to charge me two rent account payments and purchases if i make an electronic transfer between my own accounts free electronic account payment so i'm paying an account free and i'm paying it electronically what i mean by that going on the internet right stop order five rand debit order okay 250 debit order external five rand balance inquiries okay so i go to the counter and say i want to know what my balance is the first one they're giving me for free thereafter they're charging me 10 rand i go to negoli bank atm the first one is free thereafter they're charging me one rand i go to another bank's atm naughty goalie bank another bank two rand if i go to self-service banking what do i mean by that okay i go off on the internet check out my balance absolutely free right so you can see that there are lots of fees that are charged on an account so i want us to look at this example arthur's bank golly bank lists the following bank fees arthur subscribes to self-service banking and pays a monthly maintenance fee in the space of a month arthur performs the following transactions okay so let's write this down we know that these fees monthly maintenance is five grand self-service 15 rand so we're ready he is paying five rand and 15 rand okay so 15 ran for the self service plus the five rand for the maintenance fee right what else is he doing he deposits 335 rand in cash at a negoli bank atm okay so he goes he deposits cash five rand fee so poor guy is paying five rand for putting money into his own bank account he withdraws 500 cash at another bank's atm so now he's withdrawing money at another bank's atm okay if you withdraw money at a another banks atm seven rand so this poor guy now has got to pay seven rand for taking money out of his own account he withdraws a hundred grand cash over the counter at a negoli bank branch okay so he goes to a bank branch and he withdraws money over the counter 10 bucks is what he's got to pay so the poor guy is paying another 10 rand next thing he inquires twice about his balance over the counter at igori bank so he goes into the bank says i want to know what is my balance all right for finding out what is balances at the counter the first one is free but remember you did it twice that month so the second one is paying 10 rand so another 10 round oh going the wrong way okay so 10 rand for doing this he draws cash whilst buying groceries at at all and remember they're going to charge him 2 ran for that he makes three electronic account payments to pay for his rent electricity and phone bill right so let's have a look here he's paying three electronic transfers so electronic transfers between accounts electronic account payments free all right so he's not paying anything for that zero because it's all done electronically so not paying anything now the first question says how much is this bank charging him for all these transactions so all we've got to do is we've got to add all this up don't we so let's do that 15 20 25 32 42 52 54 54 and for putting money in your own account or for taking money out of your own account ish that's a bit rough let's have a look at another example because we've got some time here okay our next example says this mia has recently opened a global account at capital bank she's concerned about her monthly bank charges use a provided broach and list of her account activities for the month of april to answer the questions okay and the one question is going to be how much is she paying for all these fees okay so let's have a look at it all right first things first balance of the previous month carried forward was 210 rand 25 old mutual policy debit order returned insufficient funds suddenly 254 rand 37. balance inquiry they didn't charge you anything davidson's textile salary deposit you got 450 rand shoprite purchases debit card 847 rand shoprite cash withdrawals 250. so they give that whole list over here but there are certain fees that you're going to have to pay okay so there's no fee here for the balance old mutual policy the debit order returned okay insufficient funds so let's have a look here quickly all right so we're looking what happens if we return money here it is here okay uh debit order returned it says here return debit order for rand so she's going to pay for and because she didn't have enough money in her account right so that is for red balance inquiry over the mobile a balance inquiry okay balance inquiries mobile free she's not going to pay anything david texile salary deposit so let's have a look at deposits okay um cash withdrawals buying transfers others does it say deposition um okay it doesn't mention anything about deposits so they're not going to charge us for money so what we're going to do here is we're going through every single thing and trying to see is there a payment that we've got to do purchases at shoprite okay on a debit card so uh debit card does it show us what it's going to actually be debit card here purchase free so we're not paying anything for doing that shoprite cash withdrawal cash withdrawal supermarket till points one rand we paying one rand old mutual policy branch payment okay payment at a branch let's have a look for it quickly uh payments uh capital count at a branch three rand we're paying three red edges purchases debit card debit card purchase free we're not paying anything there capital bank atm withdrawal okay so uh withdrawal at a capital bank uh let's have a look at it so quickly withdrawals withdrawals withdrawals i don't see withdrawals they haven't shown us yeah um no they haven't shown us shoprite municipal account payments we pay but basically guys we're looking at all these expenses so you're going to work through that list can you see how we're doing it we're looking at all our expenses all the bank fees and adding them up all right how much are they paying us or how much do we have to pay to do all these services okay right there's one thing i want us to look at though and that's this because this comes up quite regularly so let's have a look at our screen here sometimes a bank will say we will charge you 5 or 10 rand plus three percent of the value okay so let's say we want to withdraw 500 rand they say yeah sure draw 500. but understand we're going to charge you 10 rand plus 3 of that value so what i'm going to do is say this let's find and remember we're going to pretend we're drawing 500 rand let's find three percent of 500 red and i'm not going to do that my calculator is going to do that okay so we're going to say i've got 500 rand i'm finding 3 all right so three percent of that equals 15 rand so i'm paying 15 rand but it was 10 rand plus the three percent so we got to pay extra 10 rand which is 25 rand guys these kind of questions are creeping in slowly into exam type questions as well where we're paying a certain amount but there is a set payment first so it says 10 rand plus 3 of the above another thing that banks can do that we need to be aware of is sometimes they will say this you're going to pay let's say an amount of 15 rand plus 2 rand per 100 rand or part thereof what is part thereof mean part thereof means this that if i now draw out a hundred ranked let's say so i go to bank draw out a hundred rep they say okay cool we're charging you 50 rand and 2 ran per 100 you drew a hundred grand it's an extra two rand it is now 17 rand go to the bank and i say i want to draw out 101 rand the bank are going to say cool 15 rand you owe us plus 2 rad for the first 100 rand now because you've gone into the next hundred so we charge you 500 rad anything over a hundred to the next hundred we're charging you another two red so although i've drawn an extra only one red they're going to charge me extra two red why because it's 2 rand per 100 rand or part thereof means up to 100 ram i'm paying 2 red up to the next 100 another so let me show to you like this so naught to 100 any amount there i'm paying two rent hundred to two hundred or a hundred comma 001 i'm paying another two rand 200 to 300 i'm paying another 200 rent so if i draw 101 rent i'm paying for the first hundred that extra one ran fits in here anywhere along yum paying an extra two red so that is part thereof okay do we understand how all this works practice practice practice people go to past papers take out past papers look at questions on different bank fees and try and answer them okay our time is coming to an end let's just summarize this little section in the segment today we've covered the following we've described and explained the meaning of various banking transactions and we've calculated the total cost of the fees that get charged remember when i go to a bank when i draw money there's always a fee charged for drawing that money and that's why guys when i go to an atm and i decide you know what i just need 20 rent and i go and draw 20 red there's a fee if i go to that bank and say right i'm going to draw a hundred rent there's a fee and sometimes that fee is exactly the same so bank might say you go and draw money we'll charge you five rent so i go and draw a hundred red i'm paying five range to the bank i go and draw 10 rand i'm paying extra five rent to the bank so it doesn't always do you good to draw little bits of money but at the same time because of safety we don't like to draw a lot of money so you've got to get the balance there and try and choose an amount of money we're not paying too much bank fees for that bit of money but we're still safe enough to carry that bit of money with you bank fees very interesting topic folk that's it from me today i trust you've learnt a lot and you know what we'll see each other again soon on your tv screen until then stay safe [Music] you