International bonds: South Africa, 5.88% 16sep2025, USD (US836205AR58) (2024)

FAQs

What is the bond rate in South Africa? ›

The South Africa 10Y Government Bond has a 10.953% yield. Central Bank Rate is 8.25% (last modification in May 2023).

The provisions of the Income Tax Act, 1962 (Act 58 of 1962) regarding interest apply to all interest earned on RSA Retail Savings Bonds. As a general rule, investors treat interest received as ordinary revenue for purposes of income tax.

Safety. RSA Retail Savings Bonds are the smartest way to save. Your money is invested with the South African Government, meaning the capital amount invested is guaranteed. Interest and capital is paid electronically into your bank account, which is a very safe way of investing.

The minimum investment amount is R1 000. RSA retail bonds offer yields linked to SA government bonds, and are available with two-, three- or five-year fixed terms. Investors can either purchase vanilla bonds or inflation-linked retail bonds.

The South Africa 5 Years Government Bond has a 9.642% yield (last update 15 Apr 2024 2:15 GMT+0).

Both local and foreign investors are holders of government bonds in both countries. In South Africa, foreign investors hold 38% of sovereign bonds, and local investors hold the majority at 62%.

An RSA Retail Savings Bond is an investment with the Government of South Africa which earns fixed or inflation linked interest for the term of the investment. RSA Retail Savings Bonds are available as: Fixed Rate Retail Savings Bond series consisting of bonds with 2-year, 3-year and 5-year terms.

Both bonds and notes pay interest every six months. The interest rate for a particular security is set at the auction. The price for a bond or a note may be the face value (also called par value) or may be more or less than the face value.

The interest you earn on corporate bonds is generally always taxable. Most all interest income earned on municipal bonds is exempt from federal income taxes. When you buy muni bonds issued by the state where you file state taxes, the interest you earn is usually also exempt from state income taxes.

How are bonds taxed in South Africa? ›

The interest received every year will be added to your income and taxed accordingly. However, remember there is an annual interest exemption of R23,800 if you're under 65 and R34,500 for those over 65, so there is some relief.

In general, you must report the interest in income in the taxable year in which you redeemed the bonds to the extent you did not include the interest in income in a prior taxable year.

Aaa (Moody's) and AAA (S&P) are the highest credit ratings. Ratings better than BBB (S&P) and Baa (Moody's) are considered to be "investment grade." Bonds that are rated below investment grade (that is, BB or lower by S&P, Ba or lower by Moody's) are sometimes called "junk" bonds.

Post Office Purchases: RSA Retail Bonds can be purchased through any branch or outlet of the Post Office by completing an application form and making payment directly to the Post Office. Payment must be by means of either cash, bank guaranteed cheque or a credit card.

Your money is at risk because there's a chance that the issuer won't be able to make repayments. Bonds tend to pay a fixed interest rate, although some returns are linked to a benchmark such as an index. The returns are potentially higher but you'll need to deposit your money over a longer period.

The South Africa 3 Months Government Bond has a 8.250% yield (last update 19 Apr 2024 2:15 GMT+0).

The composite rate for I bonds issued from November 2023 through April 2024 is 5.27%.