Part of Investing: guides on bringing capital into South Africa, investing your own money, and the rules that apply.
If your business, or you as its owner, has more cash than it needs this month, there are only a handful of places to invest surplus cash in South Africa: bank deposits, money market funds, government paper, listed shares and property, offshore funds, and other private businesses. They differ on four things that matter more than the headline rate: how quickly you can get the money back, what can go wrong, how the return is taxed, and whether a company is even allowed to buy them.
This guide is for owners of small and medium businesses, and entrepreneurs with personal savings, who want to compare the options on official rates rather than a sales pitch.
This guide was last reviewed on 29 September 2026 and is general information, not legal, immigration, tax or investment advice. Business News South Africa is not a financial adviser and does not recommend specific products or providers.
Before you invest anything: the five questions to answer first
Work through these in order:
- Working capital and an emergency reserve. Work out what the business needs for suppliers, salaries, SARS and loan repayments over the coming months, including a bad month. Our cash flow simulator lets you test that. Only money above that line is investable.
- Time horizon. Money you may need within a year belongs in cash-type instruments. Money you will not touch for five years or more can carry the ups and downs of shares.
- Liquidity. Liquidity means how fast you can turn the investment back into cash without a penalty or a loss. A call account is same day; a fixed deposit or a retail savings bond locks you in.
- Risk. Ask what could make you get back less than you put in: a bank failure, a fall in bond prices, a market crash, or a private business going under.
- Who owns the money. A company and an individual are taxed differently on interest, dividends and capital gains, and some products are open only to individuals. Paying cash out to yourself has its own tax cost (see our beginner’s guide to tax filing).
The baseline to beat is your own business. If a new machine, discounted stock or paying off an overdraft at prime (10.75% on 29 September 2026) would earn more than the options below, that usually wins. Clearing debt at prime is a guaranteed saving no rate on the card below matches.
Today’s rate card: official rates at 29 September 2026
These are the latest observations from the South African Reserve Bank’s current market rates, fetched on 29 September 2026. The Monetary Policy Committee raised the repo rate by 25 basis points to 7.25%, effective 25 September 2026, SAnews reported; our news report on the repo rate increase has the background. Our markets page has them live.
| Rate | Value | Observation date |
|---|---|---|
| Repo rate (SARB policy rate) | 7.25% | 29 September 2026 |
| Prime lending rate | 10.75% | 29 September 2026 |
| 91-day Treasury bill (tender rate) | 6.93% | 28 September 2026 |
| 364-day Treasury bill (tender rate) | 7.50% | 28 September 2026 |
| 12-month NCD rate (wholesale bank deposits) | 7.98% | 28 September 2026 |
| R2030 government bond yield | 8.335% | 28 September 2026 |
| R209 government bond yield | 9.01% | 28 September 2026 |
| Consumer inflation (CPI, year on year) | 4.4% | August 2026 |
SAnews quotes the Governor putting inflation at 4.4% against “our 3% target”.
The real return on cash today, with the arithmetic
A real return is what you earn after inflation. The quick method is yield minus August 2026 CPI of 4.4%:
- 91-day Treasury bill: 6.93% minus 4.4% = 2.53% real
- 364-day Treasury bill: 7.50% minus 4.4% = 3.10% real
- 12-month NCD: 7.98% minus 4.4% = 3.58% real
- R2030 bond: 8.335% minus 4.4% = 3.935% real
- R209 bond: 9.01% minus 4.4% = 4.61% real
The exact method divides rather than subtracts: for the 364-day bill, 1.075 divided by 1.044, minus 1, is 2.97%. Either way, cash and short government paper are paying a positive real return before tax at today’s rates.
For R500,000 held a year (an illustration, assuming the 364-day rate and inflation stay put):
- Interest at 7.50%: R37,500.
- Inflation at 4.4% erodes R22,000 of purchasing power, so the real gain before tax is R15,500.
- A company paying 27% tax keeps R27,375 of the interest, a real gain of R5,375, or about 1.1% of the capital.
- The same R500,000 in a current account earning nothing loses R22,000 of purchasing power.
Tax takes a far bigger share of the real return than of the headline rate. Compare products on that basis.
How the tax works: company versus individual
SARS rates for the current years (individuals: 1 March 2026 to 28 February 2027; companies: 27% for years ending on or after 31 March 2023).
| Type of return | Held by a company | Held by an individual |
|---|---|---|
| Interest | Taxed at the 27% company rate (or the graduated small business corporation rates); no exemption | First R23,800 a year exempt under 65, R34,500 at 65 and older, per SARS’s interest and dividends rates; the rest at your marginal rate of 18% to 45% |
| Dividends from South African companies | Exempt from income tax, and resident companies are exempt from dividends tax if they submit the declaration, per the SARS dividends tax exemptions FAQ | Exempt from income tax, but 20% dividends tax is withheld |
| Capital gains | 80% of the gain is included in taxable income: a maximum effective rate of 21.6% | 40% included, after a R50,000 annual exclusion: a maximum effective rate of 18% (SARS inclusion rates, CGT rates) |
| REIT distributions | Taxed as income in the hands of South African resident investors, not as exempt dividends | |
Two traps for companies:
- Small business corporation status. A qualifying small business corporation (SBC) pays 0% on its first R99,000 of taxable income and graduated rates above that. SARS Interpretation Note 9 says an entity cannot qualify as an SBC if more than 20% of its receipts and capital gains consist of investment income and personal service income. Investment income includes interest, dividends and rent, so a trading company sitting on a large cash pile can lose the lower rates. Ask your accountant first.
- Trading or capital. Profit on shares held as trading stock is income. The SARS Tax Guide for Share Owners explains that under section 9C, proceeds on equity shares held for at least three years are treated as capital.
For tax-free savings accounts and retirement annuities, which are individual wrappers, see our guide to tax-advantaged investing.
The options compared, one by one
Call accounts, notice accounts and money market funds
A call account pays interest and lets you withdraw on demand; a notice account usually pays more in exchange for giving the bank notice before you withdraw, with the period set by each bank. A money market fund is a unit trust that pools investors’ money into short-term instruments such as Treasury bills and NCDs. Returns move with short-term rates, broadly the 91-day bill and 3-month NCD (7.23% on 28 September 2026) territory, less fees and the bank’s margin. Get a written quote.
The Corporation for Deposit Insurance (CODI), operational since 1 April 2024, covers qualifying depositors, including non-financial companies and sole proprietors, up to R100,000 per depositor per bank. It does not cover unit trusts, so a money market fund is outside CODI.
Fits: the emergency reserve and cash needed within 12 months.
Fixed deposits
You lock money away for a set term at a rate fixed on day one, and early withdrawal is restricted or penalised. The 12-month NCD rate of 7.98% on 28 September 2026 is what banks pay each other and large institutions for one-year money; it is a useful ceiling, and a business depositing R500,000 should expect to be quoted below it.
Fits: cash earmarked for a known date, such as a provisional tax payment.
Treasury bills
A Treasury bill is short-term government debt, issued at a discount and repaid at face value. The Reserve Bank auctions 91, 182, 273 and 364-day bills weekly for National Treasury. The Treasury Bills Information Memorandum says only registered bidders may take part, bids start at R100,000 in multiples of R10,000, and banks bid for themselves and their clients. Because only registered bidders can take part, a small business would normally reach bills through a bank or a money market fund. The credit risk is the South African government’s, which is the benchmark for rand risk.
RSA Retail Savings Bonds
National Treasury sells these directly to the public. The RSA Retail Savings Bonds site shows fixed rates of 8.00% for 2 years, 8.25% for 3 years and 8.75% for 5 years for 1 to 30 September 2026. Inflation-linked bonds pay 4.25% (3 years), 4.50% (5 years) and 4.75% (10 years) above inflation for 1 June to 30 November 2026. October’s fixed rates were not yet shown on 29 September 2026. The product page puts the minimum at R1,000 and says there is no upper limit.
Two rules matter. The FAQ is explicit: these bonds “cannot be bought by group schemes, social clubs, companies or any other juristic persons.” Withdrawals are allowed after 12 months with a penalty; before that, only in extraordinary personal circumstances, with all interest forfeited.
Fits: an owner’s personal money for two years or more. Not company cash.
Government bonds
Longer-dated government bonds such as the R2030 and R209 pay a fixed coupon and trade daily. Their yield (8.335% and 9.01% on 28 September 2026) is higher than on bills, because you carry interest rate risk: when yields rise, the market price of an existing bond falls. Between 22 and 28 September 2026, as the repo rate went up, the R209 yield rose from 8.715% to 9.01%, which means holders of that bond saw its price fall. Hold to maturity and you get the coupons and your capital back; sell early and you get the market price.
JSE shares, unit trusts and ETFs
Shares earn dividends and capital growth. A unit trust or exchange-traded fund (ETF) spreads your money across many shares for a fee. The FTSE Russell factsheet for the FTSE/JSE All Share Index, with data to 31 August 2026, shows a total return (price growth plus reinvested dividends) of 15.9% a year over five years and 20.0% a year over three years. Calendar-year returns include 2.6% in 2016, minus 8.5% in 2018 and 42.4% in 2025. The same factsheet shows a fall of 7.4% over the six months to 31 August 2026. Past returns do not predict future ones.
Fits: money with a horizon of five years or more. For a company, local dividends arrive tax free, which is a real advantage over interest; capital gains cost up to 21.6%.
Listed property (REITs) and direct property
A real estate investment trust (REIT) is a listed company that owns rental property and pays out most of its income. The SARS Interpretation Note 97 says “a resident investor is subject to normal tax on distributions derived from a REIT”. That means a company holding REITs is taxed on the distributions at 27%, unlike ordinary dividends. REIT prices move like shares.
Buying a building directly, including your own premises, ties up more capital, is slow to sell, and concentrates risk: if the business struggles, tenant and owner are the same person.
Offshore ETFs and funds
Offshore investments diversify away from the rand and the local economy, but a stronger rand reduces your rand return. Individuals and companies face different exchange control rules. Our guide to exchange control and offshore allowances sets out the allowances and approvals. JSE-listed offshore ETFs give exposure without moving money abroad yourself.
Buying into another business or a franchise
This carries the highest potential return and the highest risk of losing everything, and a minority stake in a private company is hard to sell. Treat it as a business decision with full due diligence (financial statements, tax clearance, contracts, a shareholders’ agreement), not a place to park cash.
Angel and venture capital investing
Backing early-stage companies is for money you can afford to lose and leave for many years. The old section 12J tax deduction for venture capital company shares applied only to shares acquired on or before 30 June 2021, according to the SARS Guide on Venture Capital Companies. It is not available for new investments. Our tax-advantaged investing guide covers what remains.
Summary table: return, liquidity and who can hold it
| Option | Indicative return (source, date) | Liquidity | Company can hold? |
|---|---|---|---|
| Call or notice account | Bank quote; short rates near 6.93% to 7.23% (SARB, 28 September 2026) | Same day to notice period | Yes |
| Money market fund | Tracks short rates, less fees | Set by the fund’s terms | Yes |
| Fixed deposit (12 months) | Below the 7.98% 12-month NCD rate (SARB, 28 September 2026) | Locked for the term | Yes |
| 364-day Treasury bill | 7.50% (SARB, 28 September 2026) | Held to maturity | Yes, through a bank |
| RSA Retail Savings Bond, 2-year fixed | 8.00% (Treasury, September 2026) | Locked in year one, penalty after | No, individuals only |
| R209 government bond | 9.01% yield (SARB, 28 September 2026) | Tradeable daily | Yes |
| JSE equities, unit trusts, ETFs | 15.9% a year over 5 years to 31 August 2026 (FTSE Russell), not guaranteed | Tradeable daily | Yes |
Worked example: R500,000 for 12 months
An illustration, not a forecast: rates from the card, unchanged for a year, simple interest, no fees. The individual is under 65, has no other interest income, and pays a marginal tax rate of 41%. The company pays the standard 27% rate.
| Option and rate | Gross interest | Company: tax at 27% | Company: after tax | Individual: tax (after R23,800 exemption) | Individual: after tax |
|---|---|---|---|---|---|
| 91-day bills rolled four times, 6.93% | R34,650 | R9,356 | R25,294 | R4,449 | R30,201 |
| 364-day bill, 7.50% | R37,500 | R10,125 | R27,375 | R5,617 | R31,883 |
| 12-month deposit at the NCD rate, 7.98% (a ceiling) | R39,900 | R10,773 | R29,127 | R6,601 | R33,299 |
| RSA Retail Savings Bond, 2-year, 8.00% (first year) | R40,000 | Not available to companies | Not available | R6,642 | R33,358 |
How the individual figure is worked out for the 364-day bill: R37,500 minus the R23,800 exemption leaves R13,700 taxable; 41% of that is R5,617. Inflation at 4.4% costs R22,000 on R500,000 in every row, so the company’s real gain on the 364-day bill is R5,375 and the individual’s is R9,883.
For contrast, R500,000 in the All Share Index in 2018 would have ended the year R42,500 down, and in 2025 R212,000 up, on the index’s calendar-year total returns. That spread is why equities need a long horizon.
Common mistakes
- Chasing the highest rate. An offer well above the Treasury bill and NCD rates is paying you for a risk you have not been told about. Before you hand over money, check that the provider is authorised on the FSCA’s register of regulated entities.
- Locking up working capital. A two-year fixed rate looks good until VAT falls due in month four and the only way out is an overdraft at prime.
- Ignoring inflation and tax. On the example above, a company’s 7.50% becomes a real 1.1% after tax.
- Keeping everything at one bank. CODI covers R100,000 per depositor per bank. Spreading large balances, or using government paper, reduces the exposure.
- Concentrating in one asset. An owner whose income, business premises and savings all depend on the same local economy has one risk three times. Other assets, or offshore, spread it.
Frequently asked questions
Where is the safest place to put surplus business cash in South Africa?
For short periods, Treasury bills and bank deposits within the R100,000 CODI limit per bank carry the least risk to capital. Money market funds are low risk but are unit trusts, so CODI does not cover them.
Can my company buy RSA Retail Savings Bonds?
No. National Treasury’s FAQ says fixed rate and inflation-linked retail savings bonds are for individuals only and cannot be bought by companies or other juristic persons. A company can reach government paper through Treasury bills bought via a bank, government bonds, or funds that hold them.
Is it better to keep surplus cash in the company or pay it out to myself?
It depends on your marginal rate, the company’s rate and the 20% dividends tax on any payout, so there is no single answer. Model both routes with your accountant before moving money.
What real return does cash earn right now?
On 28 September 2026 the 364-day Treasury bill paid 7.50%, against August 2026 inflation of 4.4%, a real return of about 3.1% before tax. After 27% company tax the real return on the same bill is about 1.1%.
What has the JSE returned over the long term?
FTSE Russell’s factsheet shows the FTSE/JSE All Share Index returned 15.9% a year over the five years to 31 August 2026, including dividends. Individual years ranged from minus 8.5% in 2018 to 42.4% in 2025. Past returns are not a forecast.
