Why does my Z10 save received contacts to the SIM?

Good Day!

Any idea why my Z10 saves any received contacts to the SIM? In the contacts settings I have the SIM Contacts Off, but when I receive a contact and save it, it saves to the SIM and does not show in the contacts.

I want all contacts saves in the same place and synced to my hotmail account.

Any idea how to change this?