Ever heard the phrase: “make your money work for you”?
That’s why we invest. We want our money to make more money. And keep doing it year over year, over year.
But just investing isn’t enough. You need to pick the right investments.
That’s what we’re going to cover today—where you could invest in South Africa. The investment options, why it’s a popular way to invest, how to invest, and some of the best companies to invest with.
Here’s the list. Sorted by risk/reward.
Best ways to invest money in South Africa
Here are the best investment options for most South Africans:
| Investment Type | Description |
| Fixed-term savings or fixed deposits | Savings locked for a fixed period with guaranteed returns. |
| Flexible Savings Accounts and Money Market Funds | Short-term savings with easy access and stable returns. |
| Tax-Free Savings Accounts (TFSA) | A tax-free way to save and invest (with set allowances). |
| Government bonds | Loans to the government with steady interest returns. |
| Retirement annuity (RA) | Long-term savings plan with tax benefits for retirement. |
| Exchange Traded Funds (ETFs) and Unit Trusts | Diversified investment in stocks and bonds managed by funds. |
| Property | Buying real estate to generate rental income or capital gains. |
| A Stockbroking Account for stocks | Buying and selling company shares for potential high returns. |
These are great options to consider. Especially if you’re starting out.
Let’s go over each investment option one by one.
Starting with the lowest risk [lower return] options.
Fixed-term savings or fixed deposits
⚠️ = Low risk | 💲 = Low reward
What is it? Banks offer fixed-term savings or fixed deposits. You deposit money for a fixed amount of time. Usually, several months to years. And banks repay a higher fixed interest rate in return.
Why it’s a popular investment option: It’s one of the safest investment options available. As long as the bank doesn’t under—investors get a healthy guaranteed return on their investment.
How to invest: Most banks [including yours] offer fixed-term savings or fixed deposit account options. Do some homework to decide whether you want to use your bank or another. Then, decide how much you want to invest and for how long.
Struggling to pay your debt bills? Check to see if you qualify to lower your debt instalment and free up money for other expenses.
Flexible Savings Accounts and Money Market Funds
⚠️ = Low risk | 💲💲 = Medium reward
What is the difference?
Flexible Savings Accounts: Banks offer these accounts to allow you to deposit and withdraw funds anytime while earning interest. Note that fixed accounts (see above) offer higher returns than flexible accounts.
Money Market Funds: Investment firms or apps, mutual fund companies, and some banks offer Money Market Funds. These funds attempt to provide higher yields than savings accounts. This makes it a little more risky (though still safe). Withdrawals are either same-day, next-day, or with 7, 30, 60 days notice. It varies from account to account.
Why it’s a popular investment option: These two investment options offer fair interest rates while allowing investors to withdraw money on short notice. They are ideal for maintaining emergency funds or saving for upcoming expenses without the constraints of a fixed term.
How to invest:
Flexible Savings Accounts: Open an account with any major bank or financial institution. You can usually start with any amount and access your funds as needed.
Money Market Funds: Start with some research. Choose a service provider and fund and use an app or speak to someone at the company to get started.
Tax-Free Savings Accounts (TFSA)
⚠️ = Low risk | 💲💲 = Medium reward
What is it? A Tax-Free Savings Account (TFSA) lets South Africans save and invest money without tax on interest, dividends, or capital gains they earn.
Right now, every South African can invest R36,000 each year, for a total of up to R500,000 in their lifetime. And SARS won’t tax you on the returns (interest, dividends, or capital gains.)
Why it’s a popular investment option: TFSAs are ideal for long-term savings because you don’t get taxed on the returns. (Unlike other investment options—which are taxable.)
How to invest: First, decide which investment option you want to use (keep reading). Then, choose a bank, management company, or investment platform that offers tax-free investments of that type. Finally, open an account and start investing. (Remember the limits.)
Bonds (RSA Retail Savings Bonds)
⚠️ = Low risk | 💲💲 = Medium reward
What is it? Government-issued bonds offer South Africans guaranteed fixed rates of return over a specific period. Essentially, you’re lending money to the government and in return you get repaid with interest.
Why it’s a popular investment option: It’s considered one of the safest investment options available. Because it is backed by the government. And, it’s unlikely that the government will default on its debt. Additionally, investors can buy inflation-adjusted bonds. A great way to protect the value of money against high inflation periods.
How to invest: Invest directly with institutions like RSA Retail Savings Bonds or through Bond Funds with investment companies. Visit the official website or the nearest National Treasury office to learn more and get started. There’s usually a minimum investment, and the terms typically range from two to five years.
Retirement Annuity (RA)
⚠️⚠️ = Medium risk | 💲💲💲 = Medium to high reward
What is it? A Retirement Annuity, or “RA,” is like a private savings plan for when you retire. It helps you save money in a way that cuts down on taxes. Why? Because, you can deduct the money you put into it from your taxes. (Up to a certain amount.) And you only start paying taxes on the investment when you start using it in retirement. It’s worth mentioning that it’s not easy to withdraw
Why it’s a popular investment option: RAs are great for anyone who wants to make sure they have a steady source of money when they stop working. They help you save regularly and offer tax benefits.
The downside is that RAs aren’t very flexible. Your investment is generally locked in. And, because it’s managed, there are fees to take note of. (Every option in this list has fees btw—some are just higher than others.)
How to invest: You can buy a retirement annuity from insurance companies, big banks, or financial advisors in South Africa. Decide how much you want to invest each month and commit. Discovery, Allan Gray, Sanlam, Ninety One, and Sygnia—all have RA products.
Struggling to pay your debt bills?
Exchange Traded Funds (ETFs) or Unit Trusts
⚠️⚠️⚠️ = Medium to high risk | 💲💲💲 = Medium to high reward
What is the difference?
Exchange Traded Funds (ETFs): ETFs are like baskets of different investments. They hold various assets like stocks, commodities, or bonds in a fund. ‘Exchange Traded’ means you can buy and sell ETF shares on stock exchanges — similar to buying stocks.
Unit Trusts: Unit Trusts also use money from lots of people. And invest in stocks, bonds, or other securities. The primary difference is that unlike ETFs, you cannot buy or sell Unit Trusts on a stock exchange. This asset is typically bought and sold through a fund management company like Allan Gray.
Both investment options offer a simple way to buy a single asset while getting ‘safer’ from investing in a diverse mix of underlying assets. Instead of investing in one company or commodity, you get to invest in many. This generally makes it safer.
Why it’s a popular investment option: Both investment options offer a simple way to buy a single asset while getting ‘safer’ from investing in a diverse mix of underlying assets. Instead of investing in one company or commodity, you get to invest in many. This generally makes it safer. (Good for long-term investment.)
How to invest:
Exchange Traded Funds (ETFs): Anyone can buy and sell ETFs shares through an online trading platform like EasyEquities or many popular fund management accounts. Download the app to get started or contact a company that offers ETFs to find out how to invest.
Unit Trusts: Invest through financial institutions, fund managers, or specialised investment platforms. Companies like Allan Grey, Ninety One, Sygnia, and many others all offer Unit Trusts.
Property
⚠️⚠️⚠️ = Medium to high risk | 💲💲💲 = Medium to high reward
What is it? When you buy a house, apartment, commercial unit, or land… you’re investing in property. Real estate [or property] investments can generate income and returns through rent or by going up [appreciating] in value.
Why it’s a popular investment option: Property is a very popular investment for those who want to own their own home. And in most cases, it’s a good idea. While investing with the intent to rent can produce mixed results. Sometimes, it’s a great investment, but it’s not guaranteed.
How to invest: South Africans can invest in property directly or indirectly. Buying, flipping, or renting out a house are direct investments. Whereas buying property shares or investing in Real Estate Investment Trusts (REITs) or property unit trust funds are indirect investments.
- To invest directly: Use Lightstone to do some research. Get pre-approved for a home loan if you need one. Then, find a property on a listing site like Property24 and talk to an agent.
- To invest indirectly: Check out options like EasyProperties, Ninety One’s Property Equity Fund, or Satrix’s Property ETF and unit trust.
A Stockbroking Account for stocks
⚠️⚠️⚠️⚠️ = High risk | 💲💲💲💲 = High reward
What is it? A stockbroking account allows you to buy and sell stocks and other securities on a stock exchange through a licensed brokerage. Today, for most of us beginners, this would be an app.
Why it’s a popular investment option: Stocks can produce some of the best returns. NVIDIA [the computer hardware company] grew over 500% between 2023 and 2024. But, that’s not always the case. Stocks are also more risky.
How to invest: If you’re inexperienced. Be careful. Try using a demo account on a platform like Easy Equities first. Investment platforms [or apps] make it easy to buy and sell stocks. Anyone can do it nowadays. (Most beginners are better off investing in safer assets like ETFs at first. Adjust how much you invest according to your risk tolerance.)
📖 Related content:
- How to become rich in South Africa
- Online side hustles in South Africa
- How to make passive income in SA
In Summary
There you have it. Eight reliable ways to invest and where to invest—even as a beginner.
You know what keeps coming up whenever people discuss investment advice?
- It’s important to diversify. (Don’t put all your eggs in one basket.)
- Not losing money is just as important, if not more important, than your gains. A steady 11% growth rate over a long period tends to beat big ups and downs.
Start as soon as possible, track your progress, and find out what works for you.
Want to learn more? Keep reading on Everycent.