How to grow your money by lending it to the government

Julie Brownlee, Fsp Invest, 05 Nov. 2015

Tags: government retail bonds, money, saving, saving with government retail bonds, bonds,

If you’re looking for ways to save, putting your money in the bank isn’t your only option. You could consider government retail bonds.

Government retail bonds give your money the chance to grow over the years. And you’ll know how much you’re going to make.

So how do government retail bonds work?

Read on to find out…

What are government retail bonds?

Government retail bonds are bonds the South African government sells to the South African public.

When you buy government retail bonds, you’re lending the government money for a fixed term. In return for this, you’ll receive interest payments twice a year until the bond matures and the government gives you back your initial stake.

The bonds you can buy are for varying number of years. For fixed rate bonds, this is two, three and five years. When you buy the bonds, you decide how long you want to lock your cash up for.

The longer it is until the bond matures, the better the interest rate.

The plus points of investing in government retail bonds

Government retail bonds are a great option if you’re saving for a longer-term goal and don’t need access to the money until sometime in the future.

You can also help your money grow faster by reinvesting your interest payments. This means your interest payments will earn interest. The longer it is until the bond matures, the more beneficial this option is.

You don’t have to pay any fees to buy government retail bonds. You just need to register, which you can do online at the RSA Retail Savings Bonds website, and purchase them, which you can also do online.

You can also use your tax-free savings account to purchase government retail bonds through, meaning your interest payments will be free of tax.

So there you have it. How to grow your money by lending it to the government.

*********** Hot off the press ************

The Fast-track Millionaire Snowball Effect...

Imagine how it would feel to save R1,000 on your medical aid while everyone else is forking out thousands…

...Or owning your first property while others your age are struggling to make ends meet  

...Or saving R2,640 every month you didn’t even know you had

...Or knowing how never to pay full price for anything ever again.

Find out how YOU can become part of this snowball effect...


Related QA

thamutual1 asked:
Hi Josh How do I go about setting up an RSA savings bond please? Thanks TabsS [read more]
Published at 09 Oct. 2018 in: Bonds 1 Answer
Hi Joshua Your Real Wealth email this am refers. Re sell your bonds. I have sold my Govi bonds. I also have inflation linked bonds. Would your [read more]
Published at 24 Apr. 2017 in: Bonds 1 Answer
mark5558 asked:
What is a credit default swap? [read more]
Published at 26 Nov. 2015 in: Bonds Credit default swap What is a credit default swap 1 Answer
natasha3164 asked:
How do bond credit ratings work? [read more]
Published at 23 Nov. 2015 in: Bonds Bond credit ratings Investing in bonds 1 Answer
Mzito asked:
If I want to buy gorvment bonds investment now where do I start? [read more]
Published at 22 Nov. 2015 in: Bonds 1 Answer

Related articles:




Youtube Twitter Facebook

Connect with us:    

  • Accelerated Investor
  • Accessories
  • Accountancy
  • Accountancy services