Where To Invest Money In South Africa To Get Good Returns?

Last Updated on February 8, 2023

Where To Invest Money In South Africa To Get Good Returns

In times of market turbulence and negative sentiment, the instinct of many investors is to seek out the safest investments to weather the storm. Investors in South Africa are always looking for ways to get high returns on their money with the least risk. They are above all concerned with obtaining the best possible risk/reward ratio. When the stock market is not in an uptrend (as it is currently), lower risk investments with higher returns become more attractive. It might be time to look into some of the safest investments in South Africa instead of just keeping your money in a regular savings account.

In this article, we’ll look at 5 of the best safe investments in South Africa for 2023. Short-term and long-term investments are included in the following list. These high-return investments can help you safeguard your capital in times of volatility, regardless of whether you’re a new or seasoned investor.

What does it mean to say “high returns on a low-risk investment”?

When we talk about high returns on a low-risk investment, we mean an investment that may generate a larger return than simply keeping your money in a typical savings account. Savings accounts, as we all know, pay relatively little interest. In truth, the bulk of savings accounts at major institutions such as FNB and Standard Bank pay interest rates much below 2%, with some paying nothing at all (think 0.10%).

Given that Satrix 40, an ETF that tracks the FTSE/JSE Top 40 index, which includes the 40 largest companies on the JSE ranked by investable market cap, has returned an average annual return of about 13% over the past 15 years, there are clearly better places to invest your money than in a bank account, which lags inflation by a wide margin.

Low-risk assets with “high” returns are frequently appropriate for short-term investing. If you are risk averse, they may be better solutions. When discussing some of the top long-term investments in South Africa, we notice a higher risk profile for a potentially bigger gain.

5 Best Places To Invest Money Right Now

Are you looking for a place to park your cash right now that will provide you with the best returns? Here are 5 of South Africa’s most secure investments at the moment.

1. Government of South Africa Treasury Bills

Treasury Bills are short-term debt instruments denominated in South African Rands (ZAR) that are sold at a discount to par and carry no coupon. Treasury Bills are issued to the market at different maturities, from 1 day to 12 months. Treasury Bills are redeemable at par on maturity.

South Africa’s Treasury Bills are among the safest investments available, they have faily high returns for a conservative investor. Provincial and federal governments issue these to raise capital. The National Treasury issues Treasury Bills on behalf of the Minister of Finance as a representation of the Government of the Republic of South Africa.

The South African Reserve Bank (SARB) is authorized to receive and process applications for the issuance of Treasury Bills on behalf of the National Treasury. As the National Treasury’s registrar and settlement agent, the SARB is authorized to receive and make payments on Treasury Bills.

2. Money Market Funds

Money Market Funds are a form of mutual fund that invests largely in assets with high liquidity and short-term maturity. A Promissory Note, a financial tool that allows investors to lend money to corporations or banks with a defined interest rate and monthly installments, is one such example.

Bankers’ Acceptance is another type of money market fund. This investment provides a steady income stream over a variety of time horizons. One of the drawbacks is that it often demands a substantial investment, typically R1 million or more, in order to get started. An alternative to the Promissory Note, the Commercial Paper, is an unsecured kind of debt. Short-term loans to businesses or financial institutions at a fixed interest rate are the most common use for this product.

Money market accounts and funds are frequently thought to be less risky than stock and bond investments, they also tend to come with high returns.

3. RSA Retail Savings Bonds

An RSA Retail Savings Bond is an investment with the government of South Africa that earns fixed or inflation-linked interest for the term of the investment. [2]

Types of RSA Retail Savings Bonds

Fixed rate retail savings bond series with terms of two, three, and five years. Fixed Rate Retail Savings Bonds pay a market-related fixed interest rate on interest payment dates until maturity. Different interest rates apply to each maturity in the series. The Inflation Linked Retail Savings Bond series consists of bonds with maturities of three, five, or ten years. Capital invested in Inflation Linked Retail Savings Bonds is inflation adjusted over the period, and a floating interest rate is paid every 6 months on the interest payment dates.

The least amount that can be invested is R1 000.00, and the maximum amount that can be put is R5 million.

4. Fixed Annuities

In South Africa, a fixed annuity is a type of insurance contract that guarantees the purchaser a precise, fixed interest rate on their money. A variable annuity, on the other hand, pays interest that fluctuates dependent on the success of an investment portfolio selected by the account holder.

In South Africa, fixed annuities are among the most secure long-term investments. Typically, these are granted by banks or insurance firms. They give consistent, typically monthly payments over a number of years. The majority of retirees use annuities to generate income throughout their golden years.

These are dependable and secure investments for senior citizens in South Africa, and even if you die before they mature, your beneficiaries may be entitled to a dividend.

5. Dividend-Paying Stocks

Stocks that pay dividends are one of the most popular and secure investments among South African investors. These are shares of publicly traded firms on the Johannesburg Stock Exchange that regularly distribute a portion of their income to shareholders as a cash dividend. The majority of dividend stocks represent blue-chip, highly successful corporations in industries such as mining, finance, and real estate. 


Investing money in South Africa is difficult for beginners. With so many investment possibilities available, it is tough to identify which assets are the most secure. In addition to purchasing mutual funds from your bank, opening a brokerage account with a bank or brokerage is the simplest method to get started.

Brokers may offer minimal or even no commission trading fees, which can be advantageous for long-term gains. In addition, they can offer all or a portion of the key investment assets, such as stocks, ETFs, mutual funds, bonds, and cryptocurrencies.


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