Question

katiego is employed at a school by the presidential youth employment initiative (pyei). he earns a salary of r4 000 per month. he currently has a nedbank pay - as - you - use account but is thinking of changing to a capitec global one account. table 3 shows the transactional fees for two banks. table 3: transactional fees of two banks bank fees transaction type nedbank (per - 30 - day - cycle) capitec (global one) deposit (atm) r8.00 r1.00 deposit (branch) r10.00 r1.00 cash withdrawal (own bank atm) r2.90 per r1 000 withdrawal r1.00 per r1 000 withdrawal (or a part thereof) cash withdrawal (other bank atm) r1 + r2.50 per r100 withdrawal r4.00 per r1 000 withdrawal (or a part thereof) debit order (normal) r0.80 + r2.30 per r100 r1.50 debit order (external) r1.50 r1.50 send cash (r1 - r1 000) r10.00 r5.00 send cash (r1 001 - r5 000) r15.00 r10.00 send cash (r5 001 - r10 000) r20.00 r15.00 (own atm) r18.00 r5.00 use data/utility adjusted from nedbank.co.za and capitec.co.za 4.1.1 give one reason why banks charge the questions that follow. 4.1.2 determine the difference in cost of an external debit order on a nedbank pay - as - you - use account and a capitec global one account. 4.1.3 katiego had the following monthly transactions on his bank statement: - two external debit orders - one cash withdrawal of r1 500 at own bank atm - one cash withdrawal of r450 at another bank atm - one send cash transaction of r1 500 to his mother the capitec banking fees for the listed transactions are r45.00. katiego states that he would have saved r20.50 on bank fees if he banked with capitec rather than nedeank.

Explanation:

Step1: Identify reason for fees difference

Banks may charge more for branch deposits as they involve more staff - time and resources compared to automated ATM deposits.

Step2: Calculate cost of external debit order for Nedbank

For Nedbank, external debit order cost is R8,00 + R2,50 per R100. Let's assume a general - case amount. But if we consider the structure, the base fee is R8.00.

Step3: Calculate cost of external debit order for Capitec

For Capitec, external debit order cost is R1,50.

Step4: Find the difference

Difference = Cost for Nedbank - Cost for Capitec = R8.00 - R1.50 = R6.50

Step5: Calculate fees for Nedbank for given transactions

For two external debit orders at Nedbank: 2×(R8.00 + R2.50 per R100, assume small amount so base fee dominates, 2×R8.00 = R16.00)
One cash withdrawal of R1500 at own - bank ATM: R3.00 per R1000 for first R1000 and R1.50 per R100 for remaining R500. So (R3.00+(R1.50×5)) = R3.00 + R7.50=R10.50
One cash withdrawal of R450 at another bank ATM: R12.50 per R100 for the first R100 and R1.50 per R100 for remaining R350. So R12.50+(R1.50×3.5)=R12.50 + R5.25 = R17.75
One Send - cash transaction of R81 at Nedbank: R10.00
Total Nedbank fees = R16.00+R10.50 + R17.75+R10.00 = R54.25

Step6: Calculate savings

Savings = Nedbank fees - Capitec fees = R54.25 - R45.00 = R9.25

Answer:

4.1.1: Banks charge more for branch deposits as they require more staff - time and resources.
4.1.2: R6.50
4.1.3: R9.25