National Treasury has added another product to its consumer-friendly RSA Retail Savings Bonds, the Top Up Bond. Unlike the existing Fixed Rate and Inflation Linked Bonds, which require a lump-sum deposit, the Top Up Bond allows investors to make “top-up” deposits into the bond at any time during the term of the bond, which is three years.
The Top Up Bond, which was launched on Friday last week, is targeted at investors who want to save small amounts regularly, say once a month. The initial minimum deposit is R500 and subsequent deposits must be at least R100. Currently, the interest rate on the three-year bond is 8.75% a year, compounded.
Individuals as well as informal groups, such as social clubs and stokvels, which operate on monthly pooled savings, are eligible…