Going overseas for the first time? Why you need a foreign currency account
Whether you're going abroad to work or play, with the new Discovery Bank Forex Accounts, anyone can save their money in British Pounds, Euros and US Dollars. Plus, make payments in over 60 global currencies.
When Lisa graduated from university in 2011, she decided to teach English in South Korea for two years to pay off her student loans and save some money. It was her first time out of South Africa. She earned around $1,900 a month at an exchange rate of roughly R7 to the US Dollar, which gave her a monthly salary of R13,300. After deducting her expenses, she sent about R8,000 to her South African bank account every month. She paid all her loans in two years but ended up saving very little.
In 2016, she went back to South Korea to teach for another two years. She earned $2,100 a month at a rate of between R14.70 and R16.88 to the US Dollar, giving her an average monthly salary of around R30,000.
But this time, she kept her money in a global dollar account. By making the most of currency movements, she managed to save enough money to buy a car and put down a deposit on a house in Johannesburg.
Now, imagine if she had saved all her money in a US Dollar account from the first time she went overseas?
Why saving in a foreign currency is the wise choice
As we can see from Lisa's experience, the rand's value decreased significantly in just five years. As a free-floating currency, the rand is subject to market demand and supply, which include political changes, Reserve Bank interest rates and changes, inflation, economic events, and rating agency outlooks.
Major global events like the financial crisis of 2008 and the COVID-19 pandemic have caused extreme currency fluctuations across the world - and the rand is particularly vulnerable. That's why it's essential to have foreign currency denominated savings as part of a diversified savings strategy.
When Lisa sent all her money home, she lost out when the rand's value decreased. But when she started saving her money in a US Dollar account, she took advantage of currency movements in real time and saw her money grow.
You can too.
Watch your money grow with the Discovery Bank Forex Accounts
Whether you're going overseas for the first time to work or to have an epic holiday, Discovery Bank gives you a simple and affordable way to save and pay in a foreign currency.
You can now open a British Pound, Euro or US Dollar Account 24/7 on the Discovery Bank app and start transacting in seconds. Then, you can easily accept international payments in British Pounds, Euros, US Dollars or Rands, and make international payments in over 60 other currencies.
Plus, you can:
- Add a free virtual card or order a physical debit card to make safe and secure payments and withdrawals anywhere outside South Africa.
- Pay zero fees when moving money between your foreign currency accounts.
- Keep track of your transactions and how much of your foreign currency allowance you've spent with us in the Discovery Bank app.
There's no minimum balance, so anyone over 18 years with a Discovery Bank Transaction Account, Card Account or Suite can add any of our forex accounts to their banking portfolio in seconds.
Open yours today - watch the video to see how.
Expand your banking portfolio today with our Discovery Bank Forex Accounts - designed for smart, seamless foreign currency transactions.
It's the Future of Banking. Now.
This article is meant only as information and should not be taken as financial advice. For tailored advice, please contact your financial adviser.
Expand your banking portfolio today with our Discovery Bank Forex Accounts - designed for smart, seamless foreign currency transactions. Available 24/7 on the Discovery Bank app, adding a Discovery Bank Forex Accounts allow you to Open. Convert. Save. Pay. in seconds.
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