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How do Bank Reserves work?

MyGate holds two reserves namely the Bank Reserve and the RD Reserve. MyGate’s RD and Bank reserve eliminates the need for a bank guarantee.

The RD Reserve is equal to 10% or your average RD rate of your debit order submissions and is used in the event that an RD occurs. The Balance of the RD Reserve (after all RD Deductions) is paid out 25 working days from debit order action date.

The Bank Reserve is equal to 10% of the highest valued monthly debit order submissions submitted to date. If value of total monthly debit order submissions increase to an amount higher than any other previous monthly submission, 10% will be withheld of the difference between the two totals. 


Examples of how the reserves are calculated can be seen below:

First Month:
Debit Order Submitted: R1, 000.00

Deductions:
RD Reserve @ 10%: R100.00
Bank Reserve @ 10% of Greatest Monthly Submission: R100.00
Total: R200.00

Payments:
Bulk Payment (14 Working Days): R800.00
Balance of RD Reserve (25 Working Days): R100.00*
Total: R900.00

Second Month:
Debit Order Submitted: R1, 000.00

Deductions:
RD Reserve @ 10%: R100.00
Bank Reserve @ 10% of Greatest Monthly Submission: R0.00
Total: R100.00

Payments:
Bulk Payment (7 Working Days): R900.00
Balance of RD Reserve (25 Working Days): R100.00*
Total: R1, 000.00

 


Third Month:
Debit Order Submitted: R1, 500.00

Deductions:
RD Reserve @ 10%: R150.00
Bank Reserve @ 10% of Greatest Monthly Submission: R50.00
Total: R200.00

Payments:
Bulk Payment (7 Working Days): R1, 300.00
Balance of RD Reserve (25 Working Days): R150.00*
Total: R1, 450.00

Notes: * If any RD’s occur from Action Date to Payment Date, this is deducted from the RD Reserve held.

For any RD related queries please contact our accounts department.

 

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