RSA retail savings bonds are savings products issued by the South African government through the Treasury. They let an individual lend money to the state for a set term and receive interest in return. The page below explains the two kinds of bond on offer and the way their rates are set.
Retail savings bondOn sale
The rate as the Treasury's retail bond site prints it for the rate window shown.
Source: RSA Retail Savings Bonds 8, read .
Retail savings bondOn sale
The rate as the Treasury's retail bond site prints it for the rate window shown.
Source: RSA Retail Savings Bonds 8, read .
Retail savings bondOn sale
The rate as the Treasury's retail bond site prints it for the rate window shown.
Source: RSA Retail Savings Bonds 8, read .
Retail savings bondOn sale
The rate as the Treasury's retail bond site prints it for the rate window shown.
Source: RSA Retail Savings Bonds 8, read .
Retail savings bondOn sale
The rate as the Treasury's retail bond site prints it for the rate window shown.
Source: RSA Retail Savings Bonds 8, read .
Retail savings bondOn sale
The rate as the Treasury's retail bond site prints it for the rate window shown.
Source: RSA Retail Savings Bonds 8, read .
A fixed-rate bond pays the same interest rate for the whole term. You know at the start what return you will receive each period, so the outcome is predictable if you hold to maturity. The rate does not move when market rates rise or fall.
An inflation-linked bond pays a rate that is set above inflation. The interest you receive is made up of two parts: a real return, which is the fixed portion, and a adjustment that follows the change in the consumer price index. When inflation rises, the payout rises with it; when inflation falls, the payout falls.
The phrase rate above inflation means the real return you earn after price growth is taken into account. It describes the fixed portion of an inflation-linked bond, not a promise about your total return. Your actual return depends on what inflation does over the term.
The rate on a retail savings bond depends on when you invest. The Treasury publishes rates for a rate window, and anyone who buys during that window gets the rate shown for their chosen term. When the window closes, new rates are set for the next window.
This means two people can hold the same bond product on different terms. A bond taken out in one window may pay a different rate from one taken out later, even for the same length of time. Once your rate is fixed at purchase, it stays with your bond for its term.
A bank fixed deposit is a separate product offered by a bank, and its rate is set by that bank rather than by the Treasury. Retail savings bonds are backed by the government, while a fixed deposit carries the strength of the bank that issues it. Both tie up your money for a set period, so compare the terms and the early-withdrawal rules before you decide.
A common mistake is assuming the rate shown today will apply whenever you invest. The rate is tied to the window in which you buy, so check the current window before you commit.
Compared in words. Limits and rates are in the facts and tables on the other pages, not here.
| Property | Tax-free savings account | Retirement annuity | Fixed deposit | Money market fund |
|---|---|---|---|---|
| Return, in words | whatever the product inside earns | the return of the funds chosen; not guaranteed | fixed in the contract for the term | follows short-term rates; not fixed |
| Risk to capital | depends on what is held inside | market risk of the funds | low | low |
| Access | any time; a withdrawal does not free up the limit | locked until retirement age, with set exceptions | at maturity; early exit may cost interest | usually within days |
| Deposit insurance | only if held as a bank deposit | no | yes, up to the scheme's limit | no |
Every figure on this page points to one of these. The date on the right is the day we read the source.