Johannesburg - About R10.9bn has been invested in RSA Retail Savings Bonds since their launch six years ago, the National Treasury said on Tuesday.
A large proportion, about R4.3bn was invested in the retail bonds since April 2010.
The bonds were launched in 2004 to encourage more South Africans to save "by providing accessible, safe, no-fee savings products," to South Africans who have a notoriously low savings rate.
Buying the bonds is easy - they can be purchased online, at the Post Office and supermarkets like Pick n Pay.
The bonds are proving popular with mature investors. About 30.04% are over 70; 26.39% between 60 and 69 years and 13.16% between 50 and 59 years old.
Only 5.9% are between 20 and 29 years old and those between 30 and 39 years make up 10.3%.
"Savings rates in South Africa are relatively low, leaving households vulnerable to unplanned events and emergencies," the Treasury said.
"The bonds are part of an overall campaign to educate and encourage people to manage their finances. They are an affordable investment product, offering competitive returns, and are backed by government."
In November 2010, it recorded R916m worth of investments, the highest in a single month.
There are 36 000 active investors and over 70 000 active investments.
The Treasury said that the bonds provided the government with an additon instrument for funding.
Based on their performance, National Treasury is optimistic that investments in the Retail Bonds will be able to fund between 5% and 10% of the country’s total borrowing requirements within the next two years," it said.
It is aiming for a target of between R4bn and R5bn investments per year.
A large proportion, about R4.3bn was invested in the retail bonds since April 2010.
The bonds were launched in 2004 to encourage more South Africans to save "by providing accessible, safe, no-fee savings products," to South Africans who have a notoriously low savings rate.
Buying the bonds is easy - they can be purchased online, at the Post Office and supermarkets like Pick n Pay.
The bonds are proving popular with mature investors. About 30.04% are over 70; 26.39% between 60 and 69 years and 13.16% between 50 and 59 years old.
Only 5.9% are between 20 and 29 years old and those between 30 and 39 years make up 10.3%.
"Savings rates in South Africa are relatively low, leaving households vulnerable to unplanned events and emergencies," the Treasury said.
"The bonds are part of an overall campaign to educate and encourage people to manage their finances. They are an affordable investment product, offering competitive returns, and are backed by government."
In November 2010, it recorded R916m worth of investments, the highest in a single month.
There are 36 000 active investors and over 70 000 active investments.
The Treasury said that the bonds provided the government with an additon instrument for funding.
Based on their performance, National Treasury is optimistic that investments in the Retail Bonds will be able to fund between 5% and 10% of the country’s total borrowing requirements within the next two years," it said.
It is aiming for a target of between R4bn and R5bn investments per year.