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Savings · R100,000as of 1 Aug 2026

R100,000 in RSA Retail Savings Bonds

A year's interest on R100,000 comes to R8,750.00 at the five-year rate — inside the annual interest exemption, so none of it is taxed, provided you have no other local interest.

Five-year rate

8.75%nominal

until 31 August 2026

Interest in a year

R8,750

before tax

Exemption runs out at

R272,000

R394,286 from age 65

This amount is

under it

so a year's interest is untaxed

R100,000 at each term

TermRateInterest over the termTaxed at 31%You keep
2 years8.00%nominalR16,000nothingR16,000
3 years8.25%nominalR24,750nothingR24,750
5 years8.75%nominalR43,750nothingR43,750

Fixed rate bond, interest paid every six months and not reinvested. A 31% marginal rate is an illustration, not an assumption about you — the exemption is counted once per tax year, so a longer term gets more of it. The calculator takes your own bracket, your age and the inflation-linked and top-up bonds too.

Where R100,000 sits against the exemption

At the five-year fixed rate of 8.75%, the annual interest exemption of R23,800 is used up by R272,000 of capital. R100,000 is under that, so a year's interest — R8,750.00 — is entirely untaxed. The catch is that the exemption covers all local interest you earn, not only this: a bank account paying interest draws on the same allowance, and it is one allowance per person, not one per investment.

For scale on this site: a year's interest of R8,750.00 is about 1.6 months of the PMBEJD household food basket. Nothing on this page is a recommendation about what to do with R100,000.

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