This week FNB announced that its retail customers had accumulated more than R2 billion in the past year by saving small amounts ranging from R2 to R50 through the Bank Your Change® feature linked to their FNB savings account
You set an amount that you want to round up to and, every time you swipe your card, it rounds up to the nearest R2 or even R50. For example, if you selected to round up to the nearest R10 and bought an item for R73, then the transaction would be rounded up to R80 and the R7 difference would be transferred to your savings account.
Old Mutual Money has a similar savings product linked to the Old Mutual Money Account, except you select an amount between 5% and 15% of every card purchase to be transferred into a money market unit trust in your name. For example, if you spend on average R5 000 a month using your debit card and set the savings percentage at 10%, you automatically save R500 a month. You earn money market rates from the first rand.
Non-banks are also offering clever ways to save painlessly. Multiply, Momentum’s reward programme, gives cashbacks when shopping with partners such as Pick n Pay, which are paid into a savings account. If you are a Momentum Health member, a great way to use these cashbacks is to transfer them to your medical savings and use them to pay for your medical expenses.
Stash is an app from Liberty that allows you to save small amounts as and when you like. Although not directly linked to spending on your bank card, anytime you feel inspired to save, you can just tap and top up your investment from as little as R5. For example, you may decide to make lunch at home and save yourself R40 by not buying a takeaway. You can convert that R40 into a real saving by tapping on the Stash app and adding R40 to your investment.
If you find it difficult to save or need motivation, automate it. That small change will add up to something significant over time.
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