First National Bank (FNB) has lodged an application for leave to appeal a high court ruling that outlaws its innovative Million-a-Month Account product, which is aimed at creating a savings culture in South Africa.
The Pretoria High Court on Friday ruled in favour of the National Lotteries Board, which argued that the Million-a-Month Account contravened the National Lotteries Act.
FNB believes otherwise, and will pursue its arguments in favour of the product in the Supreme Court of Appeal if granted leave to appeal early next year.
FNB has assured its Million-a-Month Account customers that the status quo remains, and that the monthly draws will continue. No funds or deposits are under threat.
“There is no finding which indicates any prejudice at all to any depositor as a result of the judgement. The Million-a-Month Account is simply a unique savings account, and all deposits remain safe,” said Michael Jordaan, FNB CEO.
“We have instructed our lawyers to apply for leave to appeal, which they have already done. The lawyers have advised us that the legal effect of the application for leave to appeal suspends the effect of the judgement, and the product will continue as normal,” he said. — I-Net Bridge