The interest rates on the retail bond have not yet been officially announced, but they will be linked to the two existing bonds. Investors will be able to apply at post office outlets and also via the Internet at www.rsaretailbonds.gov.za.

Government bonds are a low risk investment where the capital and interest rate are guaranteed for the period of the investment.

No up-front fees
An added bonus is that the Treasury will not be charging up-front fees for the investment. Prior to the launch of these retail bonds, one could only invest in bonds through the medium of Unit Trusts, attracting fees of about 1.5 percent. Smaller investors will now be able to use the bonds as an effective way to save for lifestyle objectives such as retirement and education. The reason these bonds will be so appealing to the investor is that they are risk free and offer a better rate of return than conventional banks.

You can buy a RSA Retail Bond electronically through the RSA Retail Bond website, directly from the National Treasury or from any branch of the Post Office, making it easy to invest. Interest and capital are paid directly into your bank account on interest payment date, ensuring no delays. The RSA Retail Bond has been tailor-made to help you take control of your own investment decisions.

Low-risk investment
You can opt to reinvest the interest at the same rate as the RSA Retail Bond and ensure guaranteed. You may not use the RSA Retail Bonds as collateral for any loan, thus ensuring that your investment is safe. You cannot sell the RSA Retail Bonds in the market, ensuring that you are not exposed to market risk. If you choose to reinvest your interest, you will have no reinvestment risk.

In addition:
You can choose the investment term to suit your personal needs (two, three or five years).

You can choose when to buy your RSA Retail Bond — any time of the day from the RSA Retail Bond website; by sending your application form to the National Treasury offices (five days a week), or Post Offices (six or seven days a week) when open for business.

You can choose your method of payment — cash, bank guaranteed cheque or credit/debit card.

You can choose to be paid your interest or reinvest it at the same rate, providing an additional saving mechanism.

Savings product for South Africans
The RSA Retail Bonds have been designed as a savings product for South Africans. If you have a South African ID number and bank account with a financial institution in South Africa, you can participate in the saving scheme.