When the rand rallies, save more with a bank that takes your money seriously
Grow your money with a financial tool you can bank on
How well do you remember life before lockdown? Like it was yesterday, right? So you might recall that was the last time the SA rand traded strongest against the US dollar — until now.
The pandemic may have blurred the passing of time in 2020, but we’re opening the throttle on 2021 and gearing up for better things. In early June 2021, the rand rallied to its highest level against the dollar in more than two years. Its strong run follows a sustained rebound in global economies and encouraging US Treasury data.
That means now is the time for forward-thinking investors to get serious about their money and take the opportunity to hedge against a volatile market with a Nedbank foreign currency account. Nedbank created this investment vehicle because it, too, takes client’s money seriously. A well-managed foreign currency account can make the world of difference to clients who want to plan for the future.
Eight international currencies
Accumulating cash is one of the best ways to mitigate extreme price swings in a volatile market. Simply put, a Nedbank foreign currency account enables you to hedge against volatile market and currency fluctuations without having to move funds offshore, make international payments and save for global travel in eight international currencies.
These are British pound sterling (GBP), euro (EUR), US dollars (USD), Australian dollars (AUD), Canadian dollars (CAD), Hong Kong dollars (HKD), Japanese yen (JPY) and Israeli shekels (ILS).
The aim is to stay up to date with movements in the markets, especially as regards the performance of the rand, and move your money when the currency you need is producing the best results.
Saving money this way focuses your intention, and gives you something to look forward to. Being conscientious about spending and saving decisions means you can more easily align your money goals with your aspirations in life. An investment vehicle such as the Nedbank foreign currency account is the way to go, especially as expectations build for borders to open to world travellers once again.
How to apply
The Nedbank foreign currency account is easy to apply for and maintain, has no monthly fees, and requires low minimum balances.
If you already have a Nedbank transactional account, are at least 18 years old or older, and have an SA ID, all you need is a R1,500 deposit or the equivalent in any of the above-mentioned foreign currencies to start. Simply complete the short online application for the Nedbank foreign currency account on www.nedbank.co.za/fca.
However, if you don’t have a Nedbank transactional account, but want the benefits of a Nedbank foreign currency account, you can open a pay-as-you-use account. This account comes with a free gold cheque card and no monthly maintenance fees. If you apply for this option, you only pay for the transactions you make. You can apply on the Nedbank Money app or via Nedbank.co.za to have your account opened immediately.
SA residents can use part of their R1m annual discretionary allowance to invest in foreign currency without a tax compliance status pin letter (formerly known as a tax clearance certificate). However, those who have the letter can apply to the Reserve Bank for an additional R10m to further invest.
Non-residents can also apply for a Nedbank foreign currency account by indicating their status in the relevant section when completing the online application form. The maximum deposit allowed is R11m a year, with a tax compliance status pin letter, as recommended by the SA Reserve Bank. This includes the R1m single discretionary allowance.
There’s no doubt that when it comes to diversifying and protecting your portfolio, the Nedbank foreign currency account is a great idea. You don’t need to move your treasured rand offshore, but you can transfer your foreign currency to an overseas bank account, subject to exchange control regulations.
Embarking on a foreign currency investing journey is highly recommended, whether you foresee international travel needs or want to be prepared for practical yet unforeseen expenses when you are abroad. Open your Nedbank foreign currency account today.
This article was paid for by Nedbank.
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