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Reference

Financial glossary

Plain-English definitions of banking, tax, retirement, insurance and business-finance terms used in South Africa.

Definitions reviewed 29 October 2026. An acronym such as PMB opens the same entry as the full name. A short definition stays on this page. A longer note has its own page.

225 definitions

  • Annual percentage rate

    Also called APR

    Credit

    A way of expressing the yearly price of credit. South African quotations more often show the interest rate, the fees and the total payable separately.

    Do not assume an advertised APR includes every initiation fee, service fee and credit-life premium. Read the quotation. A merchant cash advance factor is not an APR.

  • Nominal interest rate

    Savings

    The stated annual rate before you account for how often interest is added.

    A nominal 12% compounded monthly is a higher effective annual rate than 12% paid once at the end. Ask which figure the advert uses.

  • Effective annual rate

    Also called EAR

    Savings

    The yearly rate after compounding. It lets you compare products that add interest at different intervals.

  • Compound interest

    Savings

    Interest earned on interest that has already been added.

    Related page

  • Simple interest

    Savings

    Interest earned only on the original amount, not on earlier interest.

  • Principal

    Credit

    The amount borrowed, before interest and fees.

  • Instalment

    Credit

    The regular repayment, usually collected by debit order.

    Related page

  • Balloon payment

    Also called Residual value

    Credit

    A lump sum still owed at the end of vehicle finance. It lowers the monthly instalment and does not make the car cheaper.

    Related page

  • Deposit

    Banking

    Money you pay in. On a loan it reduces what you borrow. In a bank account it is money the bank owes you, if it is a real deposit.

  • Credit score

    Credit

    A bureau's model of your credit record. There is no single national score.

    Related page

  • Credit bureau

    Credit

    A company that stores information about your credit agreements.

    Related page

  • Debt review

    Credit

    The National Credit Act process, through a registered debt counsellor, for a consumer who is over-indebted.

    Related page

  • Debt counsellor

    Credit

    A person registered with the National Credit Regulator to conduct debt review. An unregistered helper is not one.

  • Affordability assessment

    Credit

    The check a credit provider must make, under the National Credit Act, before granting covered consumer credit.

    A calculator that uses a percentage of salary is not that assessment and is not an approval.

  • National Credit Act

    Also called NCA

    Regulation

    The statute that governs much consumer credit in South Africa, including disclosure, fees and reckless lending.

    It does not apply in the same way to every loan to a company. Thresholds for juristic persons matter.

    Related page

  • National Credit Regulator

    Also called NCR

    Regulation

    The regulator for consumer credit providers and debt counsellors.

    Registration is checked on the regulator's own channels. A logo in an advert is not the register.

  • Reckless credit

    Credit

    Credit granted without the assessment the National Credit Act requires, or in circumstances the Act calls reckless. A court decides. A website does not.

  • Initiation fee

    Credit

    A fee at the start of a credit agreement. The Act caps it on covered agreements. The cap changes, so this glossary does not print a rand cap.

  • Monthly service fee

    Credit

    A monthly fee on a credit agreement, separate from interest.

    Related page

  • Credit life

    Insurance

    Insurance that can settle a credit agreement on events such as death or disability. The premium is part of the monthly cost.

    Related page

  • Bond

    Credit

    In everyday speech, a home loan. Strictly, the mortgage registered over the property as security.

    Related page

  • Home loan

    Credit

    Credit used to buy or refinance a home, usually secured by a mortgage bond.

    Related page

  • Transfer duty

    Tax

    Tax on the transfer of property that is not a VAT sale. WiT Money uses the SARS scale in its tax file.

    Related page

  • Prime rate

    Banking

    A benchmark lending rate commercial banks publish. Home-loan rates are often a margin above or below it. This glossary does not state today's prime.

  • Repo rate

    Banking

    The rate at which the Reserve Bank lends to commercial banks. It influences prime. It is not your home-loan rate.

  • Variable interest rate

    Credit

    A rate that can move, often with prime. The instalment moves with it.

  • Fixed interest rate

    Credit

    A rate that stays the same for the period the contract states. Breaking it can cost a penalty.

  • Electronic funds transfer

    Also called EFT

    Payments

    A payment you send from your account to another account.

    Related page

  • PayShap

    Payments

    An instant-payment option offered through participating banks. It is not free at every bank, and it is not the same as a next-day EFT.

    Limits and fees are in the bank's own guide. WiT Money does not publish a universal PayShap tariff.

  • Debit order

    Payments

    An authority for a company to collect an amount from your account.

    Related page

  • Stop order

    Payments

    An instruction you give your bank to pay someone. You start it. A debit order is the other way around.

  • Debit card

    Banking

    A card that spends money in the account, or an overdraft if the bank allows one.

  • Credit card

    Credit

    A revolving credit limit. Interest follows if you do not pay the statement in full.

    Related page

  • Overdraft

    Banking

    A limit that lets the account go negative. It is credit, often repayable on demand, not a savings balance.

    Related page

  • FICA

    Also called Financial Intelligence Centre Act

    Regulation

    The Financial Intelligence Centre Act. Banks and other firms must identify customers.

    A request for documents is normal. A fee paid to a private account to 'clear FICA' is not.

    Related page

  • POPIA

    Also called Protection of Personal Information Act

    Regulation

    The Protection of Personal Information Act. It governs how personal information is collected and used.

  • South African Reserve Bank

    Also called SARB

    Regulation

    The central bank. It includes the Prudential Authority.

  • Prudential Authority

    Regulation

    The authority, inside the Reserve Bank, that supervises the safety of banks and insurers.

  • Financial Sector Conduct Authority

    Also called FSCA

    Regulation

    The conduct regulator for financial institutions and FAIS licences.

    A licence covers specified activities. It is not a promise that a product will rise, and it is not approval of every product a brand sells.

  • FAIS Act

    Also called FAIS

    Regulation

    The Financial Advisory and Intermediary Services Act. Advice and intermediary services on financial products need a licence.

  • Corporation for Deposit Insurance

    Also called CODI

    Banking

    The Reserve Bank subsidiary that can cover qualifying depositors if a member bank is placed in resolution.

    Cover is up to R100 000 per qualifying depositor per bank, on qualifying products. It is not per account. It does not cover unit trusts, RSA Retail Savings Bonds, shares or crypto.

    Related page

  • Qualifying deposit

    Banking

    A deposit CODI's rules can cover. Not every product a bank sells is one.

  • Transactional account

    Banking

    The account used for salary, cards and debit orders. It is not automatically the best place for long-term savings.

    Related page

  • Savings account

    Savings

    A deposit account aimed at money you are not spending immediately.

    Related page

  • Fixed deposit

    Savings

    A deposit for an agreed term and rate. Early withdrawal follows the bank's rule.

    Related page

  • Notice deposit

    Savings

    A deposit you can withdraw after giving the stated notice, such as 32 days.

    Related page

  • Call account

    Savings

    A deposit you can usually withdraw without a long notice period. The rate is often lower because of that.

  • Money market account

    Savings

    A name banks use for some deposits. It is not the same thing as a money market unit trust.

  • Money market fund

    Investing

    A collective investment in short-term instruments. The price can move. It is not a CODI deposit.

    Related page

  • Unit trust

    Investing

    A collective investment scheme portfolio. You buy units from the manager. It is not a bank deposit.

    Related page

  • Exchange traded fund

    Also called ETF

    Investing

    A fund listed on an exchange. You buy it through a broker. The price moves.

    Related page

  • Index fund

    Investing

    A fund that aims to follow a market index. Following a market is not a guarantee.

  • Total expense ratio

    Also called TER

    Investing

    A fund's annual cost ratio from its disclosures. It is not every cost you pay.

  • Total investment charge

    Also called TIC

    Investing

    A wider fund-cost figure than the TER. It still may not include brokerage or advice.

    Related page

  • Platform fee

    Investing

    A fee charged by the account that holds the investment, separate from the fund's own fee.

  • Brokerage

    Trading

    The fee a broker charges to buy or sell. A zero commission can still leave a spread and statutory charges.

    Related page

  • Bid-offer spread

    Also called Spread

    Trading

    The gap between the price a buyer is bidding and the price a seller is offering. Crossing it is a cost.

  • Market order

    Trading

    An order to deal at the best price then available. The price can move while you submit it.

  • Limit order

    Trading

    An order to deal only at your price or better. It might not trade.

  • JSE

    Also called Johannesburg Stock Exchange

    Investing

    The licensed exchange where many South African shares and ETFs are listed.

  • Real estate investment trust

    Also called REIT

    Investing

    A listed property vehicle. Distributions are not taxed exactly like ordinary company dividends.

  • Dividend

    Investing

    A distribution of company profits. Many South African dividends are subject to 20% dividends tax in the site tax file.

    Related page

  • Dividends tax

    Tax

    A withholding tax on many dividends. The rate stored for calculators is 20%. REIT distributions differ.

  • Capital gain

    Tax

    The proceeds of an asset minus its base cost, when the amount is actually capital and not income.

    Related page

  • Capital gains tax

    Also called CGT

    Tax

    Tax on a taxable capital gain. For individuals in the 2027 file, R50 000 a year is excluded and 40% of the rest is included.

    The maximum effective rate stored beside that rule is 18%. A primary residence has a further exclusion the calculator does not apply. Frequent trading can be income instead.

  • Base cost

    Tax

    What an asset cost you for capital-gains purposes, including some costs SARS allows. This glossary does not calculate it.

  • Tax-free savings account

    Also called TFSA, Tax-free investment

    Tax

    A tax-free investment. From 1 March 2026 the annual limit in the tax file is R46 000 and the lifetime limit is R500 000.

    Withdrawals do not restore contribution room. A contribution above the limit can attract a 40% penalty. It is not a UK ISA.

    Related page

  • Interest exemption

    Tax

    An annual exemption on South African interest. The savings comparison records R23 800 under 65 and R34 500 from age 65 for the 2027 year of assessment.

    Checked on 28 October 2026. The 25 February 2026 budget left those amounts unchanged, according to that page. Foreign interest is not automatically the same.

  • PAYE

    Also called Employees' tax

    Tax

    Pay-as-you-earn employees' tax, withheld by an employer.

    Related page

  • UIF

    Also called Unemployment Insurance Fund

    Tax

    The Unemployment Insurance Fund contribution. The employee pays 1% of monthly remuneration and the employer pays a matching 1%. SARS still publishes a monthly earnings ceiling of R17 712, effective 1 June 2021. The salary calculator applies that ceiling to the employee share.

  • Skills development levy

    Also called SDL

    Tax

    A 1% levy on an employer's remuneration. The Budget 2026 tax guide says employers whose annual remuneration is less than R500 000 are exempt. The salary calculator does not calculate SDL, because it is an employer levy.

  • VAT

    Also called Value-added tax

    Tax

    Value-added tax. The standard rate in the tax file is 15%. Not every supply is standard-rated.

    Compulsory registration in the tax file is R2.3 million of taxable supplies in twelve months. Voluntary registration can be considered from R120 000.

    Related page

  • South African Revenue Service

    Also called SARS

    Regulation

    The revenue authority. A calculator on this site is not an assessment.

  • CIPC

    Also called Companies and Intellectual Property Commission

    Regulation

    The Companies and Intellectual Property Commission, which registers companies.

  • Tax directive

    Tax

    An instruction SARS issues, often via the fund, for the tax on a retirement or savings-component withdrawal. The fund applies. You do not invent the rate.

  • Retirement annuity

    Also called RA

    Retirement

    A retirement fund for personal contributions. Deductible within SARS limits. Not an emergency fund.

    Related page

  • Pension fund

    Retirement

    An employer retirement fund. Cash at retirement is limited by the fund rules and the tax law, including vested rights.

  • Provident fund

    Retirement

    An employer retirement fund. Older vested rights can still differ from newer contributions. Do not assume the whole benefit is cash.

  • Preservation fund

    Retirement

    A retirement fund that holds a benefit you moved when you left an employer.

    Related page

  • Two-pot retirement system

    Retirement

    The split, from 1 September 2024, of new contributions into a savings component and a retirement component.

    Many members also have a vested component. A savings-component withdrawal is taxed. It is not tax-free, and this site does not print a minimum.

    Related page

  • Savings component

    Retirement

    The part of new retirement contributions a member may be able to withdraw before retirement, subject to tax and fund rules.

  • Retirement component

    Retirement

    The part of new contributions that stays for retirement and generally has to provide an income. It is not a cash pot.

  • Vested component

    Retirement

    Retirement rights that built up before the two-pot change, kept under the rules that applied to them.

  • Living annuity

    Retirement

    A post-retirement income drawn from capital that stays invested. The capital can run out.

    Related page

  • Guaranteed life annuity

    Also called Life annuity

    Retirement

    An income an insurer pays on the policy's terms. You typically give up the capital.

  • Regulation 28

    Retirement

    The asset-class limits that apply to retirement funds, including a limit on offshore exposure.

  • Section 37C

    Retirement

    The Pension Funds Act rule on death benefits. Trustees consider dependants. A nomination form helps and is not always the final word.

    A will does not automatically override the fund.

  • Retirement lump sum

    Tax

    A lump sum at retirement, taxed on the retirement table in the tax file. For 2027 that table starts with R550 000 at 0%. Earlier lump sums are aggregated.

    This is not the tax on a two-pot savings-component withdrawal.

  • Premium

    Insurance

    The price of an insurance policy. A lower premium can hide a higher excess or a narrower schedule.

  • Excess

    Insurance

    The amount of a claim you carry. It does not mean the claim is approved.

    Related page

  • Sum insured

    Insurance

    The maximum the policy is written for. If it is below the real value, average clauses can cut even a partial claim.

  • Underinsurance

    Insurance

    Insuring for less than the replacement value. Many policies then pay only a proportion of a claim.

    Related page

  • Underwriting

    Insurance

    The insurer's decision on whether to cover you, and on what terms. Non-disclosure can undo a later claim.

  • Exclusion

    Insurance

    An event or cause the policy does not pay. Wear and tear is a common one. The schedule is the list that matters.

  • SASRIA

    Insurance

    The state-owned insurer for special risks such as riots. A motor policy does not automatically include it.

    Related page

  • Funeral cover

    Insurance

    A policy that pays a benefit when a covered person dies, often after a waiting period. It does not settle a bond.

    Related page

  • Waiting period

    Insurance

    A time at the start of a policy when some claims are not paid. Funeral cover and medical schemes both use the idea, under different laws.

  • Life cover

    Insurance

    A benefit paid if the insured person dies. The amount is a needs question, not a multiple printed by this site.

    Related page

  • Income protection

    Insurance

    A policy that can pay a monthly amount if you cannot work, on the definition in the contract.

  • Disability cover

    Insurance

    A benefit, often a lump sum, if you meet the policy's definition of disability. The definition is the product.

  • Critical illness cover

    Insurance

    A benefit if you are diagnosed with a condition on the policy's list. A condition off the list is not covered by the name alone.

  • Medical scheme

    Medical

    A scheme registered under the Medical Schemes Act. This is what people mean by medical aid.

    Related page

  • Medical aid

    Medical

    Everyday language for medical scheme membership. Not gap cover and not health insurance.

  • Gap cover

    Medical

    Short-term insurance for specified shortfalls on a medical scheme. It needs the scheme and does not pay every unpaid bill.

    Related page

  • Health insurance

    Medical

    An insurance policy with capped benefits. It is not a medical scheme and does not provide prescribed minimum benefits.

  • Prescribed minimum benefits

    Also called PMB, Prescribed minimum benefit

    Medical

    The hospital, emergency and chronic benefits a medical scheme must cover.

    A PMB is not a promise of any private hospital or any specialist's full fee. Designated service providers still apply.

    Related page

  • Designated service provider

    Also called DSP

    Medical

    A hospital or doctor the scheme requires you to use for some benefits. Going elsewhere can leave a co-payment.

  • Co-payment

    Medical

    An amount the scheme rules leave for you to pay, even when the treatment is covered.

  • Chronic disease list

    Also called CDL

    Medical

    The list of chronic conditions tied to prescribed minimum benefits. A condition off the list is not automatically a PMB.

  • Late-joiner penalty

    Medical

    A contribution loading when you join a scheme after a long time without credible cover. It can last.

    Related page

  • Medical savings account

    Medical

    A portion of your own medical scheme contribution, used for day-to-day claims. When it is empty, those claims are yours.

  • Medical scheme fees tax credit

    Tax

    A monthly tax credit for people on a registered medical scheme. For 2027 the tax file uses R376 and R254.

    It depends on how many people are on the scheme, not on the size of the contribution. A health-insurance premium is not a scheme contribution.

    Related page

  • Council for Medical Schemes

    Also called CMS

    Regulation

    The regulator of medical schemes. It does not regulate health-insurance policies.

  • Open medical scheme

    Medical

    A scheme that can accept members from the public, subject to waiting periods and late-joiner penalties.

  • Restricted medical scheme

    Medical

    A scheme only for a defined group, such as an employer.

  • Scheme administrator

    Medical

    The firm that runs the cards and the calls. It is not the medical scheme.

  • Business loan

    Business

    Credit to a firm. It may fall outside parts of the National Credit Act. A surety can still bind the owner.

    Related page

  • Surety

    Business

    A personal promise to pay the business debt if the firm does not. It can reach assets in your own name.

  • Invoice finance

    Business

    An advance against a customer invoice. With recourse, you may repay it if the customer does not pay.

    Related page

  • Invoice discounting

    Business

    Invoice finance where you often keep collecting and the customer may not be told.

  • Factoring

    Business

    Invoice finance where the financier often collects from the customer.

  • Purchase order finance

    Business

    Funding against a confirmed order, before you invoice.

    Related page

  • Asset finance

    Business

    Credit used to buy a specific asset, often with the asset as security.

    Related page

  • Equipment finance

    Business

    Asset finance for equipment. Miss the instalments and the equipment can be taken.

    Related page

  • Merchant cash advance

    Business

    A lump sum repaid from a share of card sales. The fee is not an annual percentage rate.

    Related page

  • Factor rate

    Business

    A multiple used on some advances, such as repay R1.30 per rand advanced. It is not an APR.

  • Working capital

    Business

    The money a firm needs to run between paying suppliers and being paid by customers.

  • Cash flow

    Business

    Money in and money out over time. A profit on paper can still run out of cash.

  • Turnover

    Business

    Sales, before costs. It is not profit.

  • Gross profit

    Business

    Sales minus the direct cost of those sales. Overheads are still to come.

  • Net profit

    Business

    What is left after the costs the accounts include. It is not the cash in the bank.

  • Payment gateway

    Payments

    The service that takes a card payment online. It is not a bank.

    Related page

  • Card machine

    Payments

    The device or app that takes an in-person card payment. Rental and the percentage fee are separate lines.

    Related page

  • Point of sale

    Also called POS

    Payments

    The system that records a sale in the shop. It is not SARS and it is not the bank.

    Related page

  • SMME

    Also called SME

    Business

    A small, medium or micro enterprise. The label does not decide which credit law applies.

  • Sole proprietor

    Business

    A person trading in their own name. Business and personal debts are not neatly separated.

  • Juristic person

    Business

    A company or similar body. National Credit Act cover depends on thresholds, not on the word 'business' alone.

  • Recourse

    Business

    The financier can claim the advance back from you if the customer does not pay.

  • Non-recourse

    Business

    The financier's claim is against the invoice, not automatically against you. Read the contract. Do not assume a facility is non-recourse.

  • Payroll

    Business

    The calculation and payment of wages, PAYE, UIF and other deductions. Software does not submit the money to SARS by itself.

    Related page

  • Payslip

    Tax

    The record of gross pay, deductions and net pay. Lenders ask for it. It is not a credit approval.

    Related page

  • Gross income

    Tax

    Income before the deductions the tax rules allow. On a payslip, gross pay is before PAYE and UIF.

  • Taxable income

    Tax

    The amount tax is worked out on, after allowable deductions. It is not the same as net pay.

  • Marginal tax rate

    Tax

    The rate on the next rand of taxable income. It is not the rate on every rand you earn.

  • Tax rebate

    Tax

    An amount subtracted from the tax on your income. The primary, secondary and tertiary rebates are in the tax file for the 2027 year of assessment.

  • Provisional tax

    Tax

    Payments during the year by people who are not fully covered by PAYE, including many self-employed people.

  • Tax compliance status

    Tax

    A SARS view of whether a taxpayer is compliant. Lenders and authorised dealers sometimes ask for it. An old PIN is not a permanent pass.

  • Exchange control

    Investing

    The rules on moving money offshore, applied by authorised dealers. This site does not print a rand allowance.

    Related page

  • Authorised dealer

    Banking

    A bank authorised to handle foreign exchange. A random currency app is not one.

  • Contract for difference

    Also called CFD

    Trading

    A contract that pays the change in a price. You do not own the share.

    Related page

  • Leverage

    Trading

    Using a small deposit to control a larger position. Losses are magnified, and can exceed the deposit.

  • Margin

    Trading

    The deposit a leveraged position requires. A margin call is a demand for more money.

  • Margin call

    Trading

    A demand to add money or reduce a leveraged position. If you do not, the position can be closed.

  • Liquidation

    Trading

    In leveraged trading, the closing of a position when margin is not enough. In company law, it is the winding-up of a firm. The word needs the context.

  • Custody

    Investing

    Holding securities for you. A coin left on an exchange is a claim on that firm, not the same thing.

  • Private key

    Trading

    The secret that controls a crypto wallet. Anyone who has it has the coins. A bank cannot reset it.

    Related page

  • Crypto asset

    Trading

    A digital token. It is not a bank deposit and it is not covered by CODI. The price can fall to nothing.

  • Phishing

    Banking

    A fake message that tries to make you reveal a password, PIN or one-time code.

    Related page

  • SIM swap

    Banking

    Moving your phone number to another SIM so someone else receives your one-time PIN.

  • One-time PIN

    Also called OTP

    Banking

    A code sent to approve a payment or login. A bank does not need you to read it out.

  • Financial services provider

    Also called FSP

    Regulation

    A person licensed under FAIS. Check the number on the FSCA register, not on a screenshot.

  • Ombud

    Regulation

    An independent complaints scheme. The right one depends on whether the dispute is about advice, a bank, an insurer or a scheme.

    Related page

  • National Financial Ombud Scheme

    Also called NFO

    Regulation

    A financial complaints scheme. Use its own site for which disputes it takes.

  • Average clause

    Insurance

    A policy rule that reduces a claim when you are underinsured, even if the loss is smaller than the sum insured.

  • Third-party cover

    Insurance

    Cover for your liability to other people. It does not repair your own car.

    Related page

  • Comprehensive cover

    Insurance

    Motor cover aimed at your own car as well as your liability, subject to the excess and the exclusions.

  • Buildings insurance

    Insurance

    Cover for the structure. The sum insured should track the cost of rebuilding, not the selling price.

  • Home contents insurance

    Insurance

    Cover for belongings inside the home. It is a separate sum from the building.

  • Beneficiary

    Insurance

    The person named to receive a policy benefit. On a retirement fund, trustees still consider dependants.

  • Excess contribution

    Tax

    A tax-free investment contribution above the annual or lifetime limit. SARS can charge 40% of the excess.

  • Contribution room

    Tax

    How much you may still contribute to a tax-free investment. A withdrawal does not restore it.

  • Securities transfer tax

    Also called STT

    Tax

    A tax on the transfer of listed securities. The rate stored for the site is 0.25%. It is not a broker's only charge.

  • Compounding frequency

    Savings

    How often interest is added. Monthly compounding and annual payment of the same nominal rate are different products.

  • Emergency fund

    Savings

    Cash you can reach when income stops or a bill cannot wait. The number of months is your choice.

    Related page

  • Debit order dispute

    Payments

    A request to the bank to return a collection you say was unauthorised or wrong. It does not cancel the underlying contract.

    Related page

  • Bundled bank account

    Banking

    A monthly fee that includes a list of transactions. Transactions outside the list are extra.

    Related page

  • Pay-as-you-use account

    Banking

    A low or zero monthly fee, with a charge for each transaction. A busy month can cost more than a bundle.

  • Immediate payment

    Payments

    A faster transfer than a normal EFT, usually with a fee and a limit. PayShap is one version.

  • Joint account

    Banking

    An account more than one person can use. Both people are usually exposed to the debit orders.

  • Power of attorney

    Banking

    A document that lets someone else transact for you. Banks have their own forms. It is not a blank right to give away the money.

  • Bank statement

    Banking

    The record of what moved through the account. Lenders read it. It is not an approval.

  • Unauthorised transaction

    Banking

    A payment you did not make. Tell the bank at once, using the number on the card, and keep the reference.

    Related page

  • Inflation

    Savings

    A rise in prices. A savings balance can grow in rand and still buy less.

    Related page

  • Margin over prime

    Credit

    The amount added to, or subtracted from, prime to get a lending rate. Prime plus 2 is not prime.

  • Settlement amount

    Credit

    The figure that clears a credit agreement on a given day. Ask for it in writing. A guessed balance can be short.

  • Early settlement

    Credit

    Paying a credit agreement off before the last instalment. The quotation and the Act set out which interest and fees can still be charged.

  • Debt consolidation

    Credit

    A new loan that pays old debts. A lower instalment can still cost more in total.

    Related page

  • Over-indebtedness

    Credit

    The National Credit Act test for debt review: when you cannot pay your debts as they fall due, given your means.

  • Blacklisting

    Credit

    Informal speech for an adverse credit listing. Accurate information is not deleted because you paid a 'repair' fee.

  • Judgment debt

    Credit

    A court order that you owe money. It can appear on a credit report. Spelling it 'judgement' in an advert does not change the order.

  • Emolument attachment order

    Credit

    A court order that takes money from wages. It is not the same as a voluntary debit order.

  • In duplum

    Credit

    A rule, in the National Credit Act for covered agreements, that limits unpaid interest once it reaches the unpaid principal. It is not a reason to ignore the debt.

  • VAT vendor

    Tax

    A person registered for VAT. Registration does not make every sale standard-rated.

  • Zero-rated supply

    Tax

    A taxable supply charged at 0%. It is not the same as an exempt supply, because input tax can still matter.

  • Exempt supply

    Tax

    A supply outside VAT. It is not the same as zero-rated.

  • Input tax

    Tax

    VAT a vendor paid on business purchases and may claim, if the purchase qualifies. A personal expense is not input tax.

  • Output tax

    Tax

    VAT a vendor charges on taxable supplies.

  • Taxable supply

    Tax

    A supply that is standard-rated or zero-rated. The R2.3 million VAT threshold is measured on these, not on every rand of turnover.

  • Drawdown

    Retirement

    The percentage of a living annuity paid out as income. A higher percentage can exhaust the capital.

    Related page

  • Annuitisation

    Retirement

    The requirement to use part of a retirement benefit to buy an income, rather than taking all of it as cash.

  • Beneficiary nomination

    Retirement

    The form that tells a retirement fund who you would like to receive a death benefit. Trustees still consider dependants.

  • Effective annual cost

    Also called EAC

    Retirement

    A disclosure of the charges on a retirement product. Ask for it. A small percentage compounds for decades.

  • Fund fact sheet

    Investing

    The document that states what a fund holds, the fee and the past performance. Past performance is a history.

  • Collective investment scheme

    Investing

    A pool, such as a unit trust, regulated as a scheme. It is not a bank deposit.

  • Feeder fund

    Investing

    A local fund that holds a foreign fund. You buy it in rand. It is not the same as a foreign brokerage account.

    Related page

  • Rand hedge

    Investing

    An asset that may rise in rand when the rand weakens. It can also fall when the rand strengthens. It is not a hedge you can count on.

  • Liquidity

    Trading

    How easily you can buy or sell without moving the price. A thin share can gap.

  • Volatility

    Trading

    How much a price moves. High volatility is not the same thing as a high expected profit.

  • Counterparty risk

    Trading

    The risk that the firm on the other side of a contract does not pay. A CFD has it. A share in your own name has a different custody risk.

  • Stop-loss

    Trading

    An order that tries to close a position at a chosen price. In a fast market it may fill at a worse price, or not at all.

  • Overnight financing

    Trading

    A charge for holding a leveraged position overnight. It can matter more than the commission.

  • Securities

    Investing

    Shares, bonds and similar instruments. A crypto token is not automatically one of them.

  • Government bond

    Investing

    A loan to the government, traded at a price. An RSA Retail Savings Bond is a retail product and is not a CODI deposit. It is also not your home-loan bond.

  • RSA Retail Savings Bond

    Savings

    A retail bond from National Treasury. It is not a bank deposit and it is not covered by CODI.

  • Levy

    Insurance

    A charge added to some policies, or a body corporate charge on a home. Read which one the document means. On a sectional title, levies are not the bond instalment.

  • Body corporate

    Credit

    The body that runs a sectional-title scheme. Its levies are a monthly cost beside the bond.

  • Rates and taxes

    Credit

    Municipal property charges. They are not transfer duty and they are not the bond.

  • Sectional title

    Credit

    Ownership of a unit in a scheme, plus a share of the common property. You pay levies as well as the bond.

  • Conveyancer

    Credit

    The attorney who registers a property transfer. Their fee is a quote, not the SARS transfer-duty table.

    Related page

  • Deeds Office

    Credit

    The registry of property and mortgage bonds. Its charges are not transfer duty.

  • Mortgage

    Credit

    The security over a property. People also use the word for the home loan itself.

  • Loan to value

    Credit

    The loan as a percentage of the property value. A higher percentage is a smaller deposit. It is not an approval.

  • Pre-agreement statement

    Credit

    The disclosure a credit provider must give before you sign a covered consumer agreement. Read the total payable.

  • Credit quotation

    Credit

    The offer that states the cost of a credit agreement. An illustration on this website is not one.

  • Fee cap

    Credit

    A maximum the National Credit Act sets for certain fees and interest. The numbers change. This glossary does not freeze an old cap.