| Debit cards linked to money market accounts |
Debit cards that allow clients to manage their money in an everyday account while earning the high interest rate of a money market fund are now available, with Sanlam launching this industry first.
Susan van Staden from Sanlam Personal Finance: Strategic Business Development said on Wednesday: "Throughout the world, debit cards are becoming the most convenient alternative to cash and cheques. However, traditional debit cards offered by banking institutions offer very low, if any, interest to clients.
"We believe that people want the liquidity of a money market account, the attractive interest rate offered by a money market account and the functionality of a bank account, and this is exactly what we’ve decided to give them."
Sanlam Liquid
The account, to be called Sanlam Liquid, therefore links with the Sanlam money market fund.
When clients open a Sanlam Liquid account, their deposits (including their salary, if they choose) are invested in the Sanlam money market fund to give them better returns than an ordinary bank deposit account.
Money market funds are protected by strict collective investment regulations, and fees are completely transparent on these accounts.
Van Staden said the Sanlam Liquid card offers clients a day-to-day account with total liquidity and access to their money via a Visa Electron debit card, as well as a full-fledged internet transactional capability for transfers and online payments, as well viewing account balances and statements.
Funds drawn abroad
The card can be used at any point of sale or ATMs where the Visa Electron sign or Saswitch signs are displayed. Funds can also be drawn at any ATM abroad and may be used at international POS terminals displaying the Visa Electron logo.
Since only banks may issue payment instruments and partake in settlements through the National Payment system in terms of current legislation, Rennies Bank acts as issuer of the debit card. This however does not affect the fact that the deposit is actually in the Sanlam money market fund
