Set the intention, be savvy with spending and savings, and your money and life goals should align accordingly. Picture: 123RF/LIGHTFIELDSTUDIOS
Set the intention, be savvy with spending and savings, and your money and life goals should align accordingly. Picture: 123RF/LIGHTFIELDSTUDIOS

While we wait for the chance to take to the skies en route to a bucket-list destination or to set sail on a longed-for cruise, the best thing we can do is plan. Not for that travel opportunity necessarily, but for the future — where expecting the unexpected is part of our new normal.

Using an investment vehicle such as the Nedbank foreign currency account is one way to shift the universe in your favour. Eventually, saving through investing will make whatever floats your boat a reality. Set the intention, make the effort, be savvy with spending and savings, and your money and life goals should align accordingly.

Cabin fever or no, the most constructive thing to do now is to establish more rewarding habits around spending and saving. While we work our way through the Covid-19 pandemic that has the world in turmoil, we must continue to reassess, pivot, reinvent and pivot again, if needs be. That is, when we’re not practising calming techniques that promise to get us through this once-in-a-generation crisis.

Bank on it

So what are the benefits of having a Nedbank foreign currency account? This investment tool is the ideal facility for those who want to hedge against volatile market and currency fluctuations without having to move funds offshore, make international payments and, of course, save for international travel in eight international currencies.

It’s not as complicated as it might seem. All you have to do is keep an eye on the markets, track the performance of the rand, and move your money when the currency you need is performing best. What’s best is that the Nedbank foreign currency account is easy to apply for and maintain, has no monthly fees and require low minimum balances.

If you are 18 years old, have an SA ID, and already operate a Nedbank transactional account, all you need is a R1,500 deposit or the equivalent in any of the eight qualifying foreign currencies to start. Simply complete the online application for the Nedbank foreign currency account on the Nedbank website. You’ll find it listed under forex products.

Zero transactional fees

If you’re a non-resident, you can indicate that in the relevant section of the online application, fill in your passport number, complete the application submit your form for processing.

Nedbank’s foreign currency account allows you to buy and save in British pound sterling (GBP), euro (EUR), Australian dollars (AUD), Canadian dollars (CAD), Hong Kong dollars (HKD), Japanese yen (JPY) and Israeli shekels (ILS).

The maximum deposit allowed is R11m per calendar year, with a tax certificate, as recommended by the SA Reserve Bank. This is inclusive of the R1m single discretionary allowance.

SA residents can use part of their R1m annual discretionary allowance to invest in foreign currency without a tax clearance certificate. However, those who have one see their limit go up to R10m annually.

No frills Plan B

If you don’t have a Nedbank transactional account, but would like to enjoy the benefits of a Nedbank foreign currency account, we recommend that you open a Nedbank pay-as-you-use account.

This alternative is a no-frills, transparent account that comes with a free gold cheque card. It enables clients to pay only for the transactions they make. There are no monthly maintenance fees.

How do you get it? Simply apply on the Money app or via Nedbank.co.za to get your account opened instantly.

Whichever option you choose, the Nedbank foreign currency account is a slam dunk when it comes to diversifying and protecting your treasured rand without having to move them offshore. You can even transfer your foreign currency to an overseas bank account, subject to exchange control regulations.

While we wait to see how SA’s economy will cope amid global shifts, it’s a good idea to take advantage of the opportunity to save with these easy investment tools.

Balancing financial risks with flexible decision-making about life choices, gives you the best chance of surviving and thriving financially.

Open your Nedbank foreign currency account today and start planning for your future. It’s about time.  

This article was paid for by Nedbank.