12 Investments that Pay Monthly Income in South Africa (2024)

FAQs

What is the best investment for monthly income in South Africa? ›

Real estate has historically been a reliable source of monthly income. Investing in rental properties can provide you with rental income, and you may also benefit from potential property value appreciation over time. REITs are companies that own, operate, or finance income-generating real estate across various sectors.

Dividend paying companies are usually financially sound and well managed businesses making them a low-risk investment. Another important reason to own dividend paying shares, payments tend to keep up with inflation making the income an important wealth preserver.

However, there are a number of assets that pay income on a monthly basis. Options include savings accounts, certificates of deposit, annuities, bonds, dividend stocks, rental real estate and more.

As an example, with an interest-focused investment of R1 million, generating a return of 6.7% over 12 months will mean a return of R67 000 for the year.

What is an ideal salary in South Africa? If you want to live comfortably in South Africa, according to Numbeo, a family of four would need just over R36 000 per month, excluding rent. And, a single person in South Africa would need just over R10 000 excluding rent per month.

A fixed deposit is a safe and reliable way to reach your financial goals by building wealth that lasts. All you need is a R500 minimum opening deposit to get a Fixed Deposit account at African Bank, where South Africa's highest rate of return resides!

Reinvest Your Payments

The truth is that most investors won't have the money to generate $1,000 per month in dividends; not at first, anyway. Even if you find a market-beating series of investments that average 3% annual yield, you would still need $400,000 in up-front capital to hit your targets. And that's okay.

Earning $2,000 in monthly passive income sounds unbelievable but is achievable through dividend investing. However, the investment amount required to produce the desired income is considerable. To make $2,000 in dividend income, the investment amount and rate of return must be $400,000 and 6%, respectively.

Which bank gives 7% interest monthly? ›

As of April 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Simply, to get a good estimate of what you'll need, take your current salary and multiply this by 200. Let's say you currently earn R30 000 a month. If you multiply this by 200, you arrive at 6 000 000. This means that by the time you retire, you will need to have saved R6 million for your retirement.

4% of 10 million = R400 000. This is the maximum annual salary you should withdraw once you retire, according to the 4% investing rule of thumb. R400 000 divided by 12 months = around R33 333. This is the maximum amount you should withdraw each month to ensure your savings last at least 30 more years.

100,000, you would need to invest between Rs. 1.8 crores to Rs. 2.4 crores in a fixed deposit, depending on the interest rate offered. Bonds: You could also consider invest.

Depending on how you manage your money, you can probably expect an annual income between $48,000 (at roughly $4,000 per month) and $63,000 (at roughly $5,300 per month). More is possible if you invest for more aggressive returns, but that will mean taking on more risk.