RSA retail savings bonds

[access]

i would like to know from a few folks how their experience has been while investing with them. ive read a few posts and people asking about it before.


anything bad or scary to report back on?

 

[Thor]

I have a few. Professional people straightforward process.

If you trust the government can pay back its debt then you can buy some of that by essentially lending the government money.

Now when I bought it things where a little different then they are now.

I have a inflation linked one left that matures in 2018 and a fixed rate that ends later this year, after that I would probably not enter the bond market again.

 

[access]

I have a few. Professional people straightforward process.

If you trust the government can pay back its debt then you can buy some of that by essentially lending the government money.

Now when I bought it things where a little different then they are now.

I have a inflation linked one left that matures in 2018 and a fixed rate that ends later this year, after that I would probably not enter the bond market again.

why not again? better options out there i assume?

 

[Thor]

why not again? better options out there i assume?

Yes, personally my investments do a bit better so I would rather put that lump sum in there, my fixed rate bond did I think 8% over 5 years?

I'll have to check, but it was little compared to what my DIY investing is doing.

Now with that said if you are 60 and you put 3000000 in a fixed term 5 year bond I think you will receive around 12K a month

 

[konfab]

i would like to know from a few folks how their experience has been while investing with them. ive read a few posts and people asking about it before.


anything bad or scary to report back on?

I wouldn't bother. You would get more out "investing" with a Capitec fixed deposit:

49 – 60 (months)
10.15%

https://www.capitecbank.co.za/global-one/save/rates-and-fees

5 Year Fixed Rate 9.00%

https://secure.rsaretailbonds.gov.za/

 

[JayM]

After tax & inflation, none of these options gives a positive return for most people. Fedgroup has an interesting participation bond offering @ 9.5% nominal (12.1% effective) over 5 years.

 

[supersunbird]

After tax & inflation, none of these options gives a positive return for most people. Fedgroup has an interesting participation bond offering @ 9.5% nominal (12.1% effective) over 5 years.

Well, it's definitely not an investment vehicle, it's a savings/holding vehicle (low risk, besides inflation risk, and all that).

 

[maumau]

I thought the whole attraction of RSA is that they're tax free?

 

[TheChamp]

I thought the whole attraction of RSA is that they're tax free?

They are not tax free.

 

[maumau]

They are not tax free.

Don't know where I got that idea, tks.

 

[supersunbird]

They are not tax free.

Well, any interest earning saving under about R400 000 (could be higher, depending on interest rate) is technically tax free, reason being the annual interest income exemption of R23 800

 

[HavocXphere]

They're pretty bland.

Plus the fixed ones seem risky to me - if rates move (which is like imo) then they'd be underwater.

 

[artistzzz]

Sounds good, will give them a try

 

[Thor]

Sounds good, will give them a try

Bonds?