• The Benefits of an RSA Retail Bond
• How It Works
• Buying an RSA Retail Bond
• Further Information

There are numerous benefits to saving money by investing in an RSA Retail Bond:

Safety

• Interest and capital are paid electronically into your bank account, which is a very safe way of investing.
• This is a paperless investment registered into your name. There is no physical certificate.

Guaranteed Returns

• You will earn a market-related interest rate.
• The interest rate is fixed for the whole investment period. You will know exactly what your cash flow will be.
• You can choose to reinvest the interest that you earn at the same rate as your Bond and thereby ensure guaranteed growth of your capital.

No Risk

• You may not use the RSA Retail Bonds as collateral for any loan, thus ensuring that your investment is safe.
• You cannot sell the RSA Retail Bonds in the market, ensuring that you are not exposed to market risk.
• If you choose to reinvest your interest, you will have no reinvestment risk.

Convenience

• You can buy a RSA Retail Bond electronically through the RSA Retail Bond website, or directly from the National Treasury, or from any branch of the Post Office, making it easy to invest.
• Interest and capital are paid directly into your bank account on interest payment date, ensuring no delays.
• The RSA Retail Bond has been tailor-made to help you take control of your own investment decisions.

Accessibility

• If you have an urgent need for cash, you may make an early withdrawal after 12 months but you will have to pay a penalty if there is less than R1,000 left in the Bond.

Beneficiary Nomination

• You can nominate one or more beneficiaries for your RSA Retail Bonds Portfolio. This means that if you die, your Retail Bond will not be tied up with the administration of estate.
• If you do not nominate a beneficiary, the Retail Bond will form part of your estate.
• Regardless of whether you nominate a beneficiary or not, the Bond will be taken into account when the estate duties are calculated.

• There are no charges, commission or costs when you invest in RSA Retail Bonds.

• Be a South African citizen with a South African ID number.
• Be over 18.
• Have a bank account with a bank in South Africa.
• Invest a minimum R1,000 and a maximum of R1 million.

When you invest you will be quoted an interest rate which is fixed for the period of investment you choose. You can choose to invest for a two-year, three-year or five-year period.

The interest rate for new investments is determined every month and is advertised on the RSA Retail Bond website. The rate that applies when you make the investment will apply for the entire investment period.

Interest is paid out every six months on March 31 and September 30, directly into your bank account. You can choose to add the interest to your investment (i.e. reinvested it).

In order to protect investors against risk, you cannot

• use the Bond as collateral for a loan
• sell the Bond on the market.

You need to have:

• your ID number
• your bank account details
• the completed application form
• payment

If you are between the ages of 18 and 21, you will also need one of the following:

• your parent's signature on the application form
• your marriage certificate
• proof that you have been granted majority status in terms of the Age of Majority Act, 1972.

You can submit the application:

• online
• at any post office
• The Head, Asset and Liability Management Division, The National Treasury, Private Bag x115, Pretoria, 0001

You can pay for the Bond

• electronically using internet banking
• at a Bank by cash, bank guaranteed cheque or credit/debit card
• at the Post Office by cash, bank guaranteed cheque or credit card if

To find out more about the Bond, contact:
Tel: 012 315 5888
Fax: 012 315 5675
queries@rsaretailbonds.gov.za

You can also visit the website or go to your local post for more information.