1. What is the National Solidarity Bond? - Terms and Conditions

Frequently Asked Questions - National Solidarity Bond 4 and 10 year (Series 1)For example in respect of the 4 year bond, if you encash your 4 year bond after 3years and 6 months you will not receive any of the 4 th year’s 1% interest as yourmoney was not with us for the full 12 months of year 4. You will, however, alreadyhave been paid the annual 1% interest at the end of years 1, 2 and 3.Similarly, if you encash your 10 year bond after 4 years and 11 months you will notreceive any of the 5 th year’s 1% interest as your money was not with us for the full 12months of year 5. You will however already have been paid the annual 1% interest atthe end of years 1, 2, 3 and 4.(b)Once off tax free Bonus4 year Bond – If you encash your 4 year National Solidarity Bond before the end ofthe 4 th year you will not qualify for any tax free bonusTax Free Bonus11% at the end of 4 years10 year Bond - If you encash your 10 year National Solidarity Bond before the end ofthe 5 th year you will not qualify for any tax free bonus.Tax Free Bonus10% at the end of 5 years (or in years 6 or 7) or22% at the end of 7 years (or in years 8 or 9) or40% at the end of 10 years19. Can I make a partial encashment and still avail of the interest &bonus?Yes. The amount withdrawn will qualify for interest & bonus due, if any, dependingon the savings term chosen, as shown above.Only the remaining principal amount will continue to earn annual interest of 1% untilmaturity and qualify for the tax free encashment bonus, as applicable.Issued by the National Treasury Management Agency (NTMA) on Thursday 15 March 2012 Page 8 of 14