The "official rate of interest" for calculating fringe benefits has been reduced by 0.5 percentage points to eight percent with effect from September 1, following a decrease in the South African Reserve Bank's repo rate earlier in the year.
The "official rate of interest" is used to calculate the value of certain fringe benefits on which you have to pay tax.
For example, if your employer gives you a loan on which you pay no interest or interest at a rate lower than the "official rate of interest".
Meanwhile, the interest rates on the RSA Retail Bonds have not changed for the month of September. Currently, the interest rates are 7.5 percent on the two-year retail bond, 7.75 percent on the three-year retail bond and 8.25 percent on the five-year retail bond.
If you invest in an RSA Retail Bond during September, you will earn this fixed interest rate for the full term of the bond investment. Interest is paid out every six months, on March 31 and September 30. The minimum investment amount is R1 000 and the maximum is R1 million.