Where should I invest R20 000

There are a few options available below where you can invest your savings to make your money work hard for you. The options mentioned below are low risk and will help you beat inflation. So, let’s talk about the ways where you should invest your R20 000.

Gold Coins

Gold has been around for ages. Humans have used gold as the foundation of currency. Gold is a great place to invest your cash. 

There are many places where you can purchase gold coins and they come in a range of different types such as 1oz, ½oz, ¼oz and 1/10oz. The difference between these is the amount of gold contained in each coin, so depending on your savings you can purchase the coin type you need.


When you buy shares, you purchase a piece of a company that’s on the stock exchange. When the company does well, the shares generally increase in value. The price increase or decrease is largely impacted by supply and demand of the shares. 

Another benefit of purchasing shares is dividend payments. These are payments that the company gives their shareholders. This is either payed out yearly or quarterly, some even pay out monthly. This dividend can either be used for personal use or reinvested to purchase more shares.

Tax-Free Savings Account

Many banks offer this type of savings account, just check your bank and ask them if they offer this type of account. With this account, you get to earn an interest which is tax free. The only downside is that total amount that you can invest in a year is usually limited to each person, just ask your bank what that limit is.

Investment Account

Banks usually offer investment accounts where you can earn interest on your savings, the interest rate is usually determined by how much you have in your savings and the amount of time you are looking to invest for. There are multiple different investment types such as locking your money for one month, six months or more. 

The good thing about this investment is the compounding effect, basically what this means is that if your interest is paid out monthly, the capital gains along with the initial investment is reinvested for the next cycle, creating the compound effect, you can learn more about this here.


There you have it some of the ways that you can invest R20 000 to get a safe return over the years to come. As your money grows you will earn more and will be able to access larger investment products.

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