The government of South Africa established Retail Savings Bonds with the thrust of making them accessible by the general public such that the public may be able to invest their money, while earning secured and market related returns on their investments. There are two different types of RSA Retail Savings Bonds namely the RSA Fixed Rate Retail Savings Bond, and the RSA Inflation Linked Retail Savings Bond.
The RSA Retail Savings Bonds were customized to assist you to take control of your own investment decisions and this enables you to select the investment product that suits your personal needs (Fixed Rate or Inflation Linked Retail Savings Bonds). A consumer can also choose how to buy their RSA Retail Savings Bond and this can be electronically done from the National Treasury, at any Pick ‘n Pay store or from any branch of the South African Post Office.
Consumers also have the liberty to decide when to buy their RSA Retail Savings Bond let alone choosing their method of payment –which can be done either by cash, bank guaranteed cheque or credit/debit card. Lastly, consumers can choose to be paid their interest or reinvest it at the same rate.
Safety of retail bonds
-
Retail Bonds are the smartest way to save; your money is spent with the South African Government, meaning the capital amount invested is guaranteed.
-
Interest and capital is paid electronically into your bank account, which is a very safe way of investing.
-
No Charges, Commission Or Costs
-
There are no charges, commission or costs when you invest in RSA Retail Savings Bonds. This means no unnecessary fees eat into your investment.
You are guaranteed of returns and here’s to how:
-
You will earn a market-related interest rate in any Retail Bond you invest in.
-
For the Fixed Rate Retail Savings Bonds, the interest is guaranteed and will not be affected by any adverse effects in the bond market.
-
For Inflation Linked Retail Savings Bonds, your investment is protected against inflation over the term of your investment.
No Risk: There is no risk associated with this financial facility and below is why:
-
As RSA Retail Savings Bonds can’t be used as collateral for any loan, your investment remains safe.
-
RSA Retail Savings Bonds cannot be sold 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.