A simple guide to words commonly used in banking and finance in South Africa

Understanding financial jargon can be overwhelming, especially if you're unfamiliar with banking and finance terms. At Mama Money, we're committed to helping you make informed decisions about your money. 

That's why we've put together this simple guide to explain some of the most common financial words used in South Africa.

1. EFT: Electronic Funds Transfer is a way to transfer money electronically from one bank account to another. It's a safe and convenient way to pay bills or transfer money to family and friends.
2. Remittance: A remittance is money that is sent or transferred to another country. It's often used to support family members who live abroad.
3. Available balance: Your available balance is the amount of money you have in your account that is available for you to use. It takes into account any pending transactions or holds on your account.
4. Interest rate: An interest rate is the amount of money a lender charges you for borrowing money. It's usually expressed as a percentage of the amount borrowed and is paid back over a set period of time.
5. Credit score: Your credit score is a number that represents your creditworthiness. It's based on your credit history, including how much debt you have and how well you've paid back loans and credit cards in the past.
6. Overdraft: An overdraft is when you spend more money than you have in your account, and your bank covers the difference. It's a type of credit that you have to pay back with interest.
7. Debit card: A debit card is a card that is linked to your bank account, and you can use it to make purchases or withdraw cash from ATMs. The money is deducted directly from your account.
8. Credit card: A credit card is a card that allows you to borrow money up to a certain limit. You have to pay back the money with interest, and if you don't pay it back on time, you'll be charged fees.
9. Domiciliary account: A domiciliary account is a type of account that allows you to hold foreign currency, usually in USD or EUR. It's often used for international transactions or to receive payments from abroad. Learn how to open a domiciliary account in Nigeria from South Africa.
10. Exchange rate: An exchange rate is the value of one currency compared to another. It determines how much of one currency you can get in exchange for another.
11. Beneficiary: A beneficiary is a person or entity that receives funds from a transaction. They could be a family member, friend, or business.
12. Public beneficiary: A public beneficiary is a person or entity that receives funds from a transaction. Did you know that you can now add Mama Money as a public beneficiary?
13. Recipient: A recipient is a person who receives funds from a transaction. It could be the same as the beneficiary, or it could refer to a different person who is authorised to receive the funds.

We hope this guide has helped you understand some of the most common finance terms used in South Africa. At Mama Money, we're committed to providing you with a reliable and affordable money transfer service so that you can send #moreMoneyHome with confidence.

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The Mama Money Card is a new way to manage your finances with ease and security. This card offers a hassle-free solution to access and use your money, redefining convenience for all our users. Discover all the fantastic features and benefits of the Mama Money Card by visiting our detailed blog post. For any queries or more information, feel free to reach out to us directly on WhatsApp. Your financial management just got a whole lot easier with Mama Money!

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