We dig into another investment vehicle – RSA Retail Savings Bonds. These offer great returns in a couple of flavours.
The December fixed term rates have fallen by 0.75% (three-year) and 0.5% (two and five-year) in line with the underlying government bonds.
The inflation-linked bonds have also reset as they do twice a year. The changes are up 0.5% for three-year, unchanged for five-year and down 0.25% for the 10-year and are valid until the end of May next year. Both the income and capital increase is taxed as income.
Bonds - tell me more
Bonds are really just debt instruments. In this case, you’ve lent money to the government and it promises to pay a set interest rate and return your capital at the end of the term.
With these retail bonds, you’re buying in the primary market, so there is no risk of capital loss.
How safe is the money?
I would say very safe, practically 100% safe. The government could default on the debt, but that’s unlikely for two reasons:
First, these retail bonds are a small part of the overall government debt, so defaulting on them would not save much money.
Second, governments very seldom default on debt issued in their sovereign currency, as they own the printing press.
Bu hikaye The Citizen dergisinin December 07, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye The Citizen dergisinin December 07, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Plenty on the line in Tests
With so much on the line in the Test series starting on Thursday, the Proteas can be forgiven for losing to Pakistan in the ODI series last week, but only if they deliver in the five-day campaign.
BUCS TO BOUNCE BACK?
PREMIERSHIP: RIVEIRO LOOKS TO PIRATES TO GET BACK TO WINNING WAYS
'Beaten Proteas can fight for title'
Despite falling in a 3-0 defeat to Pakistan in their ODI series which concluded on Sunday, Proteas white-ball coach Rob Walter remains confident his squad can put up a fight for the title at next year's Champions Trophy tournament.
'Joshua bout only fight left for Fury'
Tyson Fury has been told the \"only fight\" left for him after his points decision defeat in a world heavyweight boxing title bout with champion Oleksandr Usyk is an all-British clash against Anthony Joshua.
Sharks brace for Stormers
Sharks head coach John Plumtree (above) said the Stormers will target the same three areas the Bulls did in their United Rugby Championship (URC) game at Cape Town Stadium on Saturday.
Jacobs gets Black Caps call-up
Hard-hitting New Zealand batsman Bevon Jacobs earned a maiden call-up yesterday for their T20 series against Sri Lanka, which marks the start of Mitchell Santner's tenure as white-ball captain.
Coach change was a subtle one
LUNGA: COMMUNICATION THE KEY WHEN THIS HAPPENS
Amorim: Utd we 'nervous'
Manchester - Manchester United crashed to a humiliating 3-0 home defeat to Bournemouth on Sunday as Ruben Amorim (above) admitted his \"nervous\" team would have to \"suffer\" before they can get back on track.
Enzo happy despite losing ground
Liverpool manager Enzo Maresca insisted he was \"absolutely happy\" despite his side losing ground in the Premier League title race following a goalless draw away to Everton on Sunday.
Liverpool need to keep pushing
SLOT: TABLE-TOPPING REDS MUST KEEP FOOT ON THE GAS