Aneesa Razack of FNB talks about the importance of not spending that 13th cheque this holiday season. Here is how a Savings or an Investment Account can save you from starting off the New Year on a bad foot.

Johannesburg, South Africa – You've worked hard and with the festive season around the corner, it’s almost time to enjoy the results of your hard work, especially if you are looking forward to a very welcomed bonus or thirteenth cheque.  Before you spend your bonus on holidays, meals out and fun-in-the-sun activities, it is important to take stock and consider your financial situation to prevent starting the New Year off on a bad note.

“Apart from the fact that it’s just a good idea to put aside some of your bonus in an emergency fund to prepare for unforeseen events such as your car or home repairs, or to cover things like school fees and new school uniforms at the start of the year, there are a couple of excellent additional reasons to save a portion of your bonus,” says Aneesa Razack, Head of Strategic Growth at FNB Investment Products.

The South African government wants to help South Africans kick-start a savings routine and is set to launch a tax-free savings incentive in March next year.  “Consider setting aside some of your bonus now and be ready to take full advantage of these benefits when this is launched,” says Razack.

All signs indicate that there will most likely be another interest rate hike in 2015. “While this is going to hurt those of us that have debt, the positive side is you also stand to earn more interest on your savings,” says Razack  

Save now, not later

Decide up front how much of your bonus you want to save and set it aside in a savings account now, before the festive season starts.  “If it’s out of sight, it’s out of mind, and you won’t be tempted to splurge because your bank balance looks so healthy,” explains Razack.

In fact, this is a great tip to apply all year round. Pay yourself first by setting up a direct debit into a savings account at the start of the month. “Say you decide to start your savings habit by giving up your morning coffee on the way to work. That could be around R400 a month. Transfer the money at the beginning of the month before you’ve had a chance to spend it,” continues Razack.    

Choose the right savings account for yourself

Generally you have various options to choose from, such as the amount saved, length of time you save for, and amount of notice you need to give to access your money. These factors can influence the amount of interest you earn and the penalties you will pay if you need access sooner than anticipated.

“Think about why you are saving, what your personal banking habits are and choose accordingly. For instance, if you know you’ll need some money soon, you can still set it aside in a short-term savings account, earning interest, so that you don’t spend it. Or, if you are sure you won’t need the money for some months or even years, forfeit immediate access to it in return for a higher interest rate,” says Razack  

Get rewarded

Make sure your bank’s rewards programme thanks you, for opening a Savings or Investment Account. The benefit of your bank rewarding you, allows you to make your bonus go even further. 

“If you open an FNB Savings or Investment Account, you will increase your reward level points and earn more eBucks. This means you could use your eBucks to purchase discounted gifts this festive season instead of your hard-earned bonus,” notes Razack.

Think about encouraging your friends and family to do the same by giving the gift of actually saving this festive season. “By sharing the savings love, you’ll be doing your bit to encourage a savings culture, and ensure that your friends and family avoid the anxiety and panic of being caught short of cash in the New Year,” concludes Razack.  

For more information contact:

Christine Burrows – Corporate Communications Manager Tel: 087 312 8632, Mobile: 078 355 9390, Email: This email address is being protected from spambots. You need JavaScript enabled to view it.  

About Company

FNB offers a diverse set of financial products and services including transactional and deposit taking, card acquiring, credit facilities and FNB distribution channels. FNB is structured into clearly demarcated segments. This enables focused business units to develop specialised, innovative technologies and products to meet specific needs. An owner-manager culture directs decision-making in the numerous business units. Autonomy and accountability underscore FNB’s entrepreneurial culture.