The National Treasury, through its RSA Retail Bonds unit, has created a new bond savings product in a bid to encourage South Africans to save.
The RSA Retail Savings Top Up Bond product was also created in response to high demand by the public for a more affordable RSA Retail Savings Bonds product, Treasury points out in a statement.
The RSA Retail Savings Top Up Bond will be launched to the public on April 1.
“The product is targeted at younger investors who are less likely to invest large sums of money, which allows them to start saving from as little as R500 with the option to top up their investment as often as they like with a minimum of R100 at any time over the investment term,” Treasury states.
Any individual with a valid South African identity number and a bank account within the country can start investing.
Informal groups, such as social clubs and stokvels, which operate on monthly pooled savings, will be eligible to invest in the RSA Retail Savings Top-Up Bond by providing their constitution and proof of banking details in the name of the informal group.