Katlego Sekhu
With just one more sleep until month-end, many South Africans will soon see their salaries hit their bank accounts.
However, money often flows out just as quickly as it comes in, making it tricky to keep track of account activity.
Understanding banking terms and what they actually mean can help you manage your finances more effectively.
On Drive 959 with Glen, banking expert Sajeel Jagjivan, Pricing Head at FNB Retail, shared insights on how to decode bank statements and account summaries.
Jagjivan addressed a common misunderstanding about real-time transactions.
“If a customer taps their card to buy groceries at a shop, they usually expect the transaction to reflect immediately, and the balance to update in real time. However, that’s not always the case, especially if the shop doesn’t bank with the same institution as the customer,” he explained.
“There might be a slight delay in how the transaction is settled and how the information is exchanged between the banks involved. In layman’s terms, the money hasn’t fully switched hands yet. Initially, you’ll see the current balance, and the available balance will update later. This happens because the current balance hasn’t yet reflected the settlement. Once the transaction is fully settled, the two balances will align.”
Listen to the full discussion on the Drive 959 with Glen podcast.
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