Get Early Withdrawal Form-proposed Format.doc - Secure Rsaretailbonds Gov

Safety: RSA Retail Savings Bonds are considered a safe investment option, as they are backed by the government. This means the bonds are less likely to default, and your investment is secure.

Note: You cannot cash part of a paper savings bond. A paper savings bond must be cashed for its entire value....With us: Do not sign the bonds. Get FS Form 1522. Fill it out. Get your signature certified, if necessary. Send the form and the bonds to us at the address on FS Form 1522.

The Penalty levied on an early withdrawal amount that is younger than 1 year, shall be the forfeiture (loss) of all the interest on that early withdrawal amount. Payments under this option require approval and shall take 3 working weeks to be processed and paid. No payments shall be made after the 20th of each month.

Investors who hold a bond to maturity (when it becomes due) get back the face value or "par value" of the bond. But investors who sell a bond before it matures may get a far different amount. For example, if interest rates have risen since the bond was purchased, the bondholder may have to sell at a discount—below par.

Retail bonds generally provide returns ahead of inflation but by how much entirely depends on your personal tax rate. Since the interest earned (yield) on retail bonds is fully taxed, the effectiveness of beating inflation diminishes the more tax you pay.

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.

Inflation risk: The interest rate on RSA Retail Savings Bonds may not keep pace with inflation, which means that the purchasing power of your investment may decrease over time. Sarb's inflation target band is between 3% and 6%, but this level was breached in early 2022.