RSA Government Retail Bonds | Western Cape Government

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(The Government of South Africa)

RSA Government Retail Bonds

Description:

National Treasury launched RSA Retail Savings Bonds in 2004. The aim is to encourage households to start saving alongside business and government, while allowing investors to take control of their own savings portfolios, instead of investing through a third party. 

Instructions:

What is an RSA Retail Bond?

An RSA Retail Bond is an investment with the Government of South Africa that earns fixed interest for the term of the investment. It offers guaranteed returns, can be bought for as little as R1 000 and carries no commission, agency or service fees.

Investing in a RSA retail bondThe two bonds available are:

1. Fixed rate retail savings bonds

  • You have the choice of payouts (rolling maturities) of 2 years, 3 years and 5 years.
  • Offers fixed rate until maturity.
  • Investment amounts can range between R1 000 to R5 million.
  • Interest payment option – payments received twice a year or monthly.
    Note: monthly repayments for over 60s only.
  • Option of re-investing payments.

2. Fixed rate retail savings bonds

  • You have the choice of payouts (rolling maturities) of 2 years, 3 years and 5 years.
  • Offers fixed rate until maturity.
  • Investment amounts can range between R1 000 to R5 million.
  • Interest payment option – payments received twice a year or monthly.
    Note: monthly repayments for over 60s only.

Benefits of an RSA Retail Bond

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.

Expert advice on bond investmentsGuaranteed returns 

  • You’ll earn a market related interest rate. The interest rate is fixed for the whole investment period, which means that you’ll 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 charges

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

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're not exposed to market risk.
  • If you choose to re-invest your interest, you'll have no re-investment risk.

Convenience

  • You can buy an 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.

Access to your funds

  • If you have an urgent need for cash, you may make an early withdrawal after 12 months, subject to payment of a penalty.

Save money with retail bonds

Buying retail bonds

There are three easy steps to follow to invest in a retail bond:

  1. Register your details with the National Treasury
  2. Apply (select a bond and maturity)
  3. Pay

 

More information

For more details on the retail bond, as well as the current interest rates and a full list of all the channels through which you can purchase a retail bond, please visit: www.rsaretailbonds.gov.za

There is also an online calculator to help you work out what the value of your investment will be at the end of the investment period.
 

You can also refer to these frequently asked questions.


Contact details:

Helpline: 012 315 5888 (Monday-Friday, from 8am - 5pm)

Note: Please have your investor or ID number available to enable the helpline agent to easily access your investment information.

Email: queries@rsaretailbonds.gov.za

Fax: 012 315 5675 / 5314


Other relevant sites

Provided by:
Government Body: (The Government of South Africa)
The content on this page was last updated on 14 November 2018
(The Government of South Africa)