How to invest R100 000 in South Africa

What can I do with R100 000 in South Africa?

Basically, if you would ask me, I would invest the R100 000 in a tax-free savings account (TFSA). This type of product allows investors to grow their capital and receive income or dividends on the investment without incurring any taxes on the growth or distributions.

What is the best investment for monthly income in South Africa?

In South Africa, buying government, corporate or agency bonds is a good way to gain a monthly income. Bonds are debt instruments that the government, institution or a company issues to raise funds or capital. Buying a bond is essentially giving out a loan.

Where can I invest R100 000 in South Africa?

The tax-free investment option of the African Bank allows you to start investing from as little as R100 per month with your first deposit as little as R200 and continue making additional deposit, up to R100 000 per year, without having to pay income tax, dividends tax, or capital .

 What is the best thing to do with a lump sum of money?

Investing a lump sum payment into some form of savings is not a bad thing, however, it’s probably advisable to keep it in an account that offers some flexibility and can be accessed without penalty if you wind up needing the funds.

Where can I invest my money to earn the most interest in South Africa?

The following are options of investment with high interest in South Africa:

• SA Retail Bonds

SA Retail Bonds offers the best interest rate for a 36 months fixed deposit investment. The institution offers a 9.75% nominal interest rate and requires a R1, 000.00 minimum investment which should be kept for 36 months to earn the highest interest available

• African Bank

The second-best nominal interest rate for a 60-month fixed deposit account is offered by African Bank and is 10.19 %. With only R500.00 needed as a minimum investment, the account has the lowest minimum requirement of the top 3 in the 60-month category.

• Nedbank

Nedbank offers a number of fixed deposit accounts to individuals in South Africa with competitive interest rates and has special interest rates for those who are above the retirement age of 55 years. The highest nominal interest rate for a fixed deposit account is 9.7%, which is available for those over the age of 55 years.