Old Mutual launches innovative solution to turn people’s everyday spending into instant investments

In the current economic environment, consumers are finding it increasingly difficult to make ends meet – let alone finding ways to save. Realising that certain expenses are unavoidable, but saving is not, Old Mutual has launched an investment credit card that will ensure customers’ everyday spend makes them instant investors.

Richard Treagus, Old Mutual General Manager (Product Development), says that the investment credit card is part of Old Mutual’s commitment to providing tangible solutions to customers to help them realise their financial goals.

“By launching a card that acts as an investment card, we encourage customers to save with their everyday spend. The key difference with our card is that every transaction at point of sale with the Old Mutual Investment Credit Card Account generates a base investment reward that is invested o­n the customer’s behalf in an Old Mutual Money Market unit trust,’ explains Treagus.

Given the global economic slow-down and its impact o­n South Africans, Old Mutual agrees that consumers should caution against taking o­n debt that they cannot afford.
‘In short, we are encouraging customers to use their cards in a responsible way – whether as a convenient payment mechanism or to avoid carrying cash around. o­n top of this, we now provide them with a great opportunity to become instant investors without changing their spending patterns,’ Treagus emphasises.

To further underscore the investment focus of the card, customers will be able to make ad hoc investment contributions into their Old Mutual Money Market unit trust whenever they have spare cash with a minimum amount of o­nly R500. This should be good news for customers who can now have easy access to an investment account at much lower minimum amounts than those usually applying to money market funds - for example, minimum monthly recurring contributions of R5 000 or additional ad hoc investment amounts of R10 000 (in the case of Old Mutual).

Customers will also benefit from other attractive features o­n the Old Mutual Investment Credit Card Account. Over and above the base investment rewards, customers can at least double their investment rewards into their money market unit trust by shopping with their Old Mutual American Express (Amex) investment credit card at our selected retail partners.

‘Importantly, becoming an Old Mutual Investment Credit Card Account customer will also provide free access to Old Mutual’s ‘Care 4U’ support programme. It offers a comprehensive network of assistance and instantly connects customers to 24-hour access to information, advice and services o­n emergencies, healthy living, work issues, death, legal advice and counselling,’ says Treagus.

In line with the Old Mutual Group strategy to drive closer synergies within the group’s businesses, Nedbank backs the Old Mutual Investment Credit Card Account.

Sydney Gericke, Managing Executive of Nedbank Card, points out that the credit card account has been designed to ensure that cardholders benefit from everyday purchases – be it groceries, clothes or any other card purchases – as a percentage of all the purchases made will be allocated to their Old Mutual Investment Account, making them instant savers.

‘Importantly, to benefit from this program, people don’t have to take o­n more credit, but o­nly redirect their existing everyday spend to be via the linked American Express or Visa Card associated with their account. This will reap immediate investment benefits,’ concludes Gericke.