Where to Buy Government Bonds in South Africa
What is a government bond?
A government bond is a fixed-interest financial product issued by the government to fund its spending and commitments.
How does government bond work?
A bondholder invests R20,000 (called face value) into a 10-year government bond with a 10% annual coupon; the government would pay the bondholder 10% of the R20,000 each year. At the maturity date the government would give back the original R20,000.
Where to buy government bonds in South Africa?
Buy government bonds at the following institutions:
1. Directly at the National Treasury – 240 Madiba Street, Cnr Thabo Sehume and Madiba Street, Pretoria, 0002.
2. Any branch of the South African Post Office.
3. Any South African Bank
4. Visit the RSA Retail Savings Bonds website
What is the interest rate on government bonds in South Africa?
The South Africa 10 year Government Bond has a 10.775% interest rate.
Can I add or top up my existing investment?
You will not be able to add-on/top-up to an existing investment because RSA Retail Savings Bonds are lump-sum-type investments.
Can I make payment to buy government bond by a cheque at the Post Office or the bank?
Cheques are no longer accepted as payment methods as of December 31, 2020.
Do the bonds have an expiry date?
The RSA Retail Savings Bonds do not have an expiration date. However, the National Treasury may remove or terminate the issuance of RSA Retail Savings Bonds at its own discretion.
Who qualifies to own a Retail Savings Bond?
The individual must be a South African citizen with a valid Identity Number and a bank account in South Africa. Since there are no age limitations, parents must sign the consent clause on the application form for minors under the age of 18.
What are the required documents to purchase the Retail Savings Bond?
1. A legitimate South African identification card. Passports and driver’s licenses are not accepted.
2. Your personal bank account information
3. A sum of not less than R1000 and not more than R1 million
4. An application form that has been duly completed
