The National Treasury launched the RSA Retail Savings Bonds in 2004 to encourage more South Africans to save by providing accessible, safe, no-fee savings products. The bonds have proven to be highly successful, with over R4.3 billion invested since April 2010. In November 2010, National Treasury recorded R916 million worth of investments, the highest ever in a single month.
This brings the total amount invested in these products since their launch to R10.
36 000 active investors and over 70 000 active investments.
The bonds are intended to support government's savings initiative and encourage a longer-term savings outlook among South Africans. Savings rates in South Africa are relatively low, leaving households vulnerable to unplanned events and emergencies. The bonds are part of an overall campaign to educate and encourage people to manage their finances. They are an affordable investment product, offering competitive returns, and are backed by government.
The bonds also represent a diversification of government's funding instruments on offer, providing government with a retail source of funding. Based on their performance, National Treasury is optimistic that investments in the Retail Bonds will be able to fund between 5% and 10% of the country's total borrowing requirements within the next two years. A target of between R4 billion and R5 billion in investments per year is being aimed for.
Find out more about the bonds at www.rsaretailbonds.gov.za. See the attached annexure for details on the performance of the bonds. For further information contact Kershia Singh on 012 315 5819 / 072 623 4608.
2 year investment - 7.
3 year investment - 7.
5 year investment - 8.
3 year - 2.
5 year - 2.
10 year - 3.
National Treasury 4.
Post Office 50.
Pick n' Pay 1.
Roll Overs 4.