Personal Banking

CURRENT ACCOUNT

• Allows you to lodge and withdraw money at any time
• Day-to-day transactions

Services

• Includes ATM, Bank Draft and Credit transfer

Pay path

• Electronic transfer of wages from an employer's bank to an employees
• Safer for the employer
• Saves the employee time

How to open A Current Account

Go to your local branch and complete an application form

a. Proof of identity b. Proof of address c. Employment status d. Sample Signature

ONLINE BANKING

Features

• Access bank account details
• View account balance
• View payments
• Transfer money
• Set up an DO and DD

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Personal Banking

Borrowing Money

BORROWING

• Receiving money from a person or financial institution with a promise to pay back the money with interest in the future
• Interest - additional cost on top of the money you borrow

WHAT TO CONSIDER

1. Do I really receive the item?
2. Can I get the money another way?
3. How much still it cost?

KEY TERMS:

• Instalment: fixed sum of money that is paid regularly until loan is repaid
• Asset: anything that is worth money
• Credit worthiness: an estimate of someone's ability to pay off a loan
• Guarantor: a person who agrees to pay your loan if you are unable to
• Collateral: an asset used for security for repayment of a loan
• Insolvent: a person is unable to pay their debts.

REASONS FOR BORROWING

1. To pay for an expensive item
2. To deal with short term deficit
3. For emergencies / unplanned expenditure

TYPES OF BORROWING

Short-term

• Paid off within one year
• Bank overdraft & credit card

Medium term

• Paid off within five years

Long-term

• Paid off in 5+ years
• mortgage

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Personal Banking

APPLYING FOR A LOAN

1. Personal details
2. Employment details
3. Savings record
4. Borrowing history
5. Purpose of loans

COST OF A LOAN

• Annual Percentage Rate (APR): A calculation of the overall cost of a loan
• Declining Principal: The amount you still owe at any point
• Cost of credit: Difference between amount borrowed + Total repaid.