Personal finance
RSA Retail Savings Bonds
- How do I invest in RSA Retail Savings Bonds?
- Can a group or saving scheme buy RSA Retail Savings Bonds?
- Do I have to invest in Retail Savings Bonds only on a monthly basis?
- Can I use a debit order for a certain amount to invest in Retail Savings Bonds each month?
- Can my beneficiaries continue with the investments in Retail Savings Bonds in case of my death?
- When can I have access to my money invested in Retail Savings Bonds?
- Can I sell my Retail Savings Bonds?
- Can I use my RSA Retail Savings Bonds, or the interest payment as security for a loan?
- What is the money used for that is invested in the RSA Retail Savings Bonds?
- If I purchase and register my under aged children for retail savings bonds, do they have to pay tax?
Consumer Protection
- Where do I find out more about my rights as a consumer?
How do I invest in RSA Retail Savings Bonds?
Information on investing in RSA Retail Savings Bonds are available under Government programmes and projects.
Is it possible to purchase these RSA Retail Savings Bonds as a group or scheme?
No, these investments are specifically meant for individuals and cannot be bought by group schemes, social clubs, companies or any other juristic persons; only natural persons can purchase them.
Do I have to invest in Retail Savings Bonds only on a monthly basis?
No, depending on your financial situation you may either invest once off or as often as you wish. Please note that each investment when investing at different times, must be a minimum amount of R1 000.00. Each investment will have its own maturity date and/or interest rate.
Can I use a debit order for a certain amount to invest in Retail Savings Bonds each month?
No, you need to apply each time before you invest in the Retail Savings Bonds for reconciliation purposes. If you don't apply we will have money in our account and no application with which to match it.
Can my beneficiaries continue with the investments in Retail Savings Bonds in case of my death?
No, in the event of death, the investment will be paid out to the Estate or to the nominated beneficiary(s).
When can I have access to my money invested in Retail Savings Bonds?
The Fixed Rate Retail Savings Bond series consists of bonds with 2-year, 3-year and 5-year terms. The Inflation Linked Retail Savings Bond series consists of bonds with either a 3-year, 5-year or 10-year maturity. However, you may withdraw your money after 12 months of investing, subject to a penalty fee.
Can I sell my Retail Savings Bonds?
No, RSA Retail Savings Bonds are non-tradable securities.
Can I use my RSA Retail Savings Bonds, or the interest payment as security for a loan?
No, RSA Retail Savings Bonds are non-tradable securities thus you cannot transfer your rights to any third party.
What is the money that is invested in the RSA Retail Savings Bonds used for?
As the investments will finance a part of the budget deficit the funds will be used for education, security, building schools and roads etc.
If I purchase and register my under-aged children for retail savings bonds, do they have to pay tax?
Not directly, as minors and non-income earners, children do not pay tax.
For the latest update and more information about income tax for individuals and donations tax, please contact your tax advisor or the nearest South African Revenue Service office.
Where do I find out more about my rights as a consumer?
The Consumer Protection Act, Act 68 of 2008 [PDF] provides protection to you as consumer. The National Consumer Commission (NCC) was established in terms of the Act with jurisdiction throughout the Republic of South Africa. Provincial Consumer Affairs Offices countrywide offer you advice and protection.
You can find more FAQs on consumer rights on the website of the National Consumer Commission.
