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Thursday, May 1, 2008
That’s your lottery

Well, it’s no more ‘a million a month’ for FNB clients.

This follows a Supreme Court of Appeal ruling on 28th March 2008, which upheld a High Court ruling that FNB’s Million-a-Month Account savings offering contravened the National Lotteries Act.
FNB acknowledges a ‘protracted court battle’ in which it sought to maintain its marketing gimmick in which clients received very low interest on their account in return for the chance to win a million rand. A draw was run each month since launch in 2005 ‘with a view to encourage savings.’ Evidently the account has produced 36 millionaires since then. It has paid out in excess of R57 million in addition to 5.4 million worth of eBucks (part of the FNB’s rewards programme).
Robert Keip, CEO of FNB’s Savings and Investment Products, said depositors’ funds will be made available to customers at one day’s notice should they wish to claim them until 15th May 2008. Otherwise account balances will be transferred to a 32-Day Interest Plus Notice Account. They will immediately earn a tiered interest (currently around 7% - 9% pa) on the balance held.
The Bank noted the fact that the Court stated in its judgment that, “The National Lottery has a monopoly on collecting money from the general public in this way.”
The loss of the court battle does not put a stop to the FNB’s efforts to entrench a culture of savings in South Africa. “If anything, today’s court decision challenges us to look for more innovative ways to help people save their money,” he said.
For enquiries please contact the call centre on 0860 11 22 44 or visit the nearest FNB branch.

Copyright © Insurance Times and Investments® Vol:21.4 1st May, 2008
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