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South Africa is a nation of poor savers. We’re told that consistently – and the statistics back it up. But many ordinary people are probably tired of having the message hammered down their throats.
National Treasury, in what can only be considered as a rare outbreak of creativity, decided to try and do something about the poor savings culture when it launched its RSA Retail Savings Bonds.
These affordable bonds – with minimum investment starting at R1 000 – provide a real incentive for ordinary people to save and have been a practical introduction to the bond market.
However, retail bonds aren’t like ordinary bonds, though these fixed rate and inflation-linked products carry the same backing by Government. Once bought the bonds can’t be traded and must be carried to maturity. An added incentive is that there are no fees or commission attached to them.
Retail Savings Bonds are also easy to buy: online from National Treasury, at Post Offices and Pick n Pay stores. This is a serious attempt to bring saving, through bonds, to the people. You can pick up a bond when you do your monthly shopping.
Analysts agree retail bonds are good building blocks for an investor’s portfolio and particularly well suited to retired investors.
The bonds are available at the following rates and over the following dates to maturity:
Fixed rates
Inflation-linked rates
- Finweek
National Treasury, in what can only be considered as a rare outbreak of creativity, decided to try and do something about the poor savings culture when it launched its RSA Retail Savings Bonds.
These affordable bonds – with minimum investment starting at R1 000 – provide a real incentive for ordinary people to save and have been a practical introduction to the bond market.
However, retail bonds aren’t like ordinary bonds, though these fixed rate and inflation-linked products carry the same backing by Government. Once bought the bonds can’t be traded and must be carried to maturity. An added incentive is that there are no fees or commission attached to them.
Retail Savings Bonds are also easy to buy: online from National Treasury, at Post Offices and Pick n Pay stores. This is a serious attempt to bring saving, through bonds, to the people. You can pick up a bond when you do your monthly shopping.
Analysts agree retail bonds are good building blocks for an investor’s portfolio and particularly well suited to retired investors.
The bonds are available at the following rates and over the following dates to maturity:
Fixed rates
- Two years – 8%.
- Three years – 8.25%.
- Five years – 8.50%.
Inflation-linked rates
- Three years – 2.25%.
- Five years – 2.50%.
- Ten years – 3%.
- Finweek
