How to invest in RSA Retail Savings Bonds? 

Easy as ABC. [THREAD]

Let start by having a general understanding of what is a Retail Savings bonds. In simple English Retail Savings bonds is money which you lend out to government on agreement that government will pay you back after 2,3,5 or 10 years with....

....fixed rate or inflation link rate (which are adjusted over the term).

RSA Retail savings bonds are generally considered to be low risk investments because they are issued by the government and the government will always be here but that does not mean it will be here and have money. (With our government anything is possible: My side note)

As mentioned above, there are 2 types of Retail Savings Bonds you can invest your money into: 

The 1st one is the fixed interest rate one which for the duration of the bong agreement with government you get fixed (not changing) interest rates.

The second one is the inflation rate one which basically takes the inflation rate into consideration plus a percentage on top which from my understanding is adjusted from time to time.

Any South African citizen of any age(kids as per our law will need thier legal guardian/perant to consent for them) can buy a Retail Savings bonds from a minimum of R1000 to R5 million.

You can calculate how much you will get by investing in a bond using the RSA Retail Savings Bonds calculate:  https://secure.rsaretailbonds.gov.za/calculator.aspx 

Also it will be important to note that bonds too are subjected to interest rates cuts and increases. As the daddy of all banks the Reserve Bank cut on interest rates or increase rates.

Retail Savings bonds have no fees or commissions attached to them so you pay the price you see. 

You can buy them at the South African Post Office or online via this website:  https://secure.rsaretailbonds.gov.za/Register.aspx 

Retail Savings bonds can be seen as a nice way to diversify your investment portfolio and spread your risk wide. 

There also many bonds which you can look into and also there are EFT bonds you can research more into and are available to buy via Easy Equities.

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Reminder: My content is base on my knowledge and understanding. It does not serve as financial advice. It is only for educational purposes.

For any financial advice speak to a registered advisor with FSCA.