RSA retail savings bond

nivo

nivo

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An RSA Retail Savings Bond is an investment with the Government of South Africa which earns fixed or inflation linked interest for the term of the investment. Fixed Rate Retail Savings Bonds earn a market-related fixed interest rate payable on the interest payment dates until maturity
secure.rsaretailbonds.gov.za secure.rsaretailbonds.gov.za
Is it a good time to look at investing into?RSB-Rates-April-2020.png
 
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If you are sitting on a pile of cash, there are many investment opportunities. Choose carefully.

If you (plural) don't have cash or an income, you are screwed either way.
 
Whilst we have lockdown you can't make new investments as far as I know. These have been pretty good investments over last couple of years for some pensioners.
 
Cage Rattler said:
Whilst we have lockdown you can't make new investments as far as I know. These have been pretty good investments over last couple of years for some pensioners.
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Yes, I am looking for a safe and low risk investments.
Also investments that attract little or no fees at all.
 
I've just checked their website. I see they have changed their rules as from today to allow Applications.
 
Looks like you need a certified copy of ID and stamped bank statement. I wait till after lock down maybe some one will rate us down further and get better rates
 
nivo said:
Where would you suggest investing into?
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I truly think that nobody knows. I invested quite a chunk of change with a unnamed investment firm in around 2013. First couple of years seemed okay, but nothing spectacular. But since around 2016, I think, there's just been a pretty steady decline, with everything falling apart recently. I'm now too afraid to actually check on exactly how much is left. I ran into my financial adviser a couple of weeks before the start of the lockdown, but I couldn't really think of what to ask him...I thought I did the wise long-term thing in taking a medium-risk portfolio, but it's just all a big gamble at the end of the day & nobody really knows what's gonna happen with markets, equities or whatever...
 
I am thinking of investing in RSA retail bonds every year to make use of interest exemption 23800 rands per year. As per calc on rsa site, if one invests 49K, interest comes out to be close to 23K for a 5 year deposit. Idea is that, if done every year, maturity amount will take care of school fees (well - at least more than 70% of fees as the things stand now).

Any thoughts?

p.s. this is above TFSA contribution in case anyone comments on that aspect.
 
surface said:
I am thinking of investing in RSA retail bonds every year to make use of interest exemption 23800 rands per year. As per calc on rsa site, if one invests 49K, interest comes out to be close to 23K for a 5 year deposit. Idea is that, if done every year, maturity amount will take care of school fees (well - at least more than 70% of fees as the things stand now).

Any thoughts?

p.s. this is above TFSA contribution in case anyone comments on that aspect.
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Have you considered doing the same thing with a fixed deposit from one of the banks with high interest like African Bank and getting them to pay out the interest yearly? You an lower the deposit to be in line with the tax threshold.

I am also thinking of something similar.
 
TheChamp said:
Have you considered doing the same thing with a fixed deposit from one of the banks with high interest like African Bank and getting them to pay out the interest yearly? You an lower the deposit to be in line with the tax threshold.

I am also thinking of something similar.
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I did check out African bank as well. This is how they compare for 5 years as per the calculator's available on their respective sites for a FD of R50000. Hopefully, I got this right.

African Bank - R75012.05
RSA Retail bonds - R73446.60

Not sure if difference of 1,565.45 (over 5 years) will convince me to chose AB over RSA. :unsure:
 
surface said:
I did check out African bank as well. This is how they compare for 5 years as per the calculator's available on their respective sites for a FD of R50000. Hopefully, I got this right.

African Bank - R75012.05
RSA Retail bonds - R73446.60

Not sure if difference of 1,565.45 (over 5 years) will convince me to chose AB over RSA. :unsure:
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Yeah, I had the Retail Bond investment for a small sum a couple of years ago, I was impressed by the overall admin, I am hoping my account is still active because I am strongly considering it, not for 5 years though, maybe 3.
 
TheChamp said:
Yeah, I had the Retail Bond investment for a small sum a couple of years ago, I was impressed by the overall admin, I am hoping my account is still active because I am strongly considering it, not for 5 years though, maybe 3.
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What I like that once you have the account, it is basically 2-3 clicks to have a new investment and then you transfer the funds and it is reflected within 24 hours (subject to your bank of course). Great turnaround time for a public sector.
 
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