Seeking an investment that yields a monthly return? More South Africans are turning to tax free investments, money market accounts, and even 10x Investments for stable income streams.
This guide explores twelve legit investments in South Africa that pay out consistently. Whether you’re checking returns on each investment company and comparing via an investment calculator, all details are gauged with fixed deposits to Exchange Traded Funds.
Discover practical ways to grow your money while you sleep. Financial literacy is the key.
Read to unpack all the potential benefits of each investment.
What is Investment?
An investment is like planting money today to yield more future profits.
Technically, it means investing your money in various financial assets, such as stocks, property, or funds, to generate income or profit over time.
This financial strategy is a smart way to make your money work for you, rather than letting it sit idle in your bank account.
Top 12 Legit Investments That Pay Monthly in South Africa
Explore these twelve broad investment options that pay monthly, each with its own risks, returns, and requirements to help you plan smarter.
1. Money Market Accounts
Money market accounts are like high-earning savings accounts that let your money earn interest while you keep full access. They typically require a minimum balance of R50,000, reporting a net rate of 6.388% for June 2025.
These accounts are managed in accordance with strict banking regulations, offering low risk and capital protection.
2. Unit Trust Income Funds
Unit trust income funds pool money from many investors to buy bonds, money market assets, and dividend stocks. They offer annual returns of around 5-7% with starting amounts as low as R500 per month.
Managed by licensed professionals under strict regulations, these funds are suitable for beginners seeking easy diversification. However, just check the fees, as they affect your final returns.
3. Rental Property Income
Rental properties offer steady monthly cash flow. An average rental of between R6500 and R7000 per month can yield around 5%.
However, this still depends on location and demand. This type of tangible investment comes with responsibilities, such as managing vacancies, covering upkeep costs, and making market-driven rent adjustments.
4. Fixed Deposits with Monthly Interest
Fixed deposits lock your money for a set term and pay interest on a monthly basis. Annual rates are typically around 5 to 9 percent, resulting in returns of approximately 0.4 to 0.75 percent per month.
They suit conservative investors wanting stable income and capital protection. Please note that early withdrawals often incur penalties, so plan your cash flow carefully.
5. High-Yield Savings Account
High-yield savings accounts function similarly to regular savings accounts, but they offer higher interest rates, typically ranging from 4 to 7 percent annually or 0.3 to 0.6 percent monthly. They require higher minimum balances but remain flexible for short-term goals or emergency funds.
These accounts are regulated like bank deposits, offering safety. Always check for fees or withdrawal limits that can reduce your overall returns.
6. Notice Deposit Accounts
Notice deposit accounts need advance notice, usually 32 to 90 days, before you can withdraw. They pay monthly interest at rates of around 0.4 to 0.6 percent, which is higher than those of instant-access accounts.
These accounts are suitable for savers who want better returns and can plan ahead. Interest is paid monthly, and deposits are protected under banking regulations.
7. Income Mutual Funds
Income mutual funds invest in bonds, dividend stocks, and cash assets to pay a monthly income. Annual yields average 5 to 9 percent, giving roughly 0.4 to 0.75 percent per month.
They suit investors wanting diversified monthly returns managed by professionals. Check fees to see how they affect your net income.
8. Living Annuities
Living annuities offer a structured monthly income from your retirement savings. Returns depend on your drawdown rate and chosen investments, often linked to market performance.
They suit retirees who need a stable monthly income with flexible withdrawal options, but returns can fluctuate.
9. Income-generating Exchange Traded Funds
These ETFs hold dividend-paying stocks or bonds and distribute income on a monthly or quarterly basis. Monthly returns vary by fund but generally yield between 0.3% and 0.6%.
They suit investors wanting a diversified income with low fees and easy market access.
10. Peer-to-peer lending platforms
P2P lending connects investors to borrowers, earning 8 to 12 percent annually, roughly 0.7 to 1 percent monthly. Risks include borrower defaults.
They suit investors seeking higher returns, provided they can tolerate potential losses.
11. Preferred Stocks
Preferred shares pay fixed dividends monthly or quarterly, acting like a mix of stocks and bonds. Monthly yields vary based on the issuing company’s terms and market conditions.
They suit income-focused investors wanting predictable payouts with moderate market risk.
Read more: Best 10 Share to Buy in South Africa to Watch in 2025 – TradersUnited
12. Staggered Government Retail Bonds
These bonds pay fixed monthly interest, yielding around 8 to 10% annually, or 0.6 to 0.8 percent per month. The government guarantees capital.
They suit conservative investors who need a safe, regular income with no market exposure.
How to Choose the Best Monthly Investment for Your Goals
First, know your risk tolerance and time horizon. Low-risk options, such as fixed deposits or money market accounts, are suitable for short-term goals that prioritize capital safety. For higher income and moderate risk, choices such as unit trust income funds or income-generating ETFs may be a better fit.
Read more: TradersUnited – 5 Pro Tips: How to Be a Good Trader?
Joining CommuniTrade can also help you make smarter decisions by learning from real investors’ strategies and experiences tailored to your financial goals.
FAQ
Why should you invest in fixed income in South Africa?
Fixed-income investments, such as bonds and fixed deposits, offer steady interest payments and capital protection, making them ideal for maintaining income stability and portfolio diversification.
How much tax do you pay on investment interest?
As of 2025, the South African Revenue Service (SARS) presented data that SA residents under 65 enjoy the first R23,800 in interest per year tax-free, while those 65 and older get R34,500.
Do startups pay taxes on Investments?
Startups do pay tax on any investment returns or gains they make. However, investments through SARS-approved Venture Capital Companies (VCCs) offer annual deductions of up to R2.5 million, making startup investments more tax-efficient for qualifying entities.
Is property investment still profitable in South Africa?
Yes. Gross rental yields now average around 10.4% nationally in 2025, driven by strong demand in cities like Johannesburg and Cape Town, far exceeding historical averages of 6–8%
In top areas like Sandton, yields even reach 11–16%, making property one of the highest-returning monthly income investments currently available.
Next Steps: Calculate, Compare, and Invest Confidently
Choosing the right monthly income investment depends on your goals, risk appetite, and cash flow needs. Use an investment calculator to compare realistic monthly returns from fixed deposits, unit trusts, or property yields. Always verify current rates and fees before committing.
But knowledge alone isn’t enough. Joining platforms like CommuniTrade gives you real-time market insights and strategies from experienced investors. It’s where smart decisions turn into consistent results, guided by a trusted community.
