Mastering stokvels: Tips and tricks on keeping savings safe

Whether your purpose for joining a stokvel is to set aside money that will cover your basic expenses later (such as groceries), to cover funeral expenses or to invest together, stokvel groups can now benefit from financial products and services specifically designed for society savings needs.

While pooling money and having it paid out later is useful, the opportunity also exists to grow that money so that you get even more out of it.

Here are some useful guidelines to help you on opening or starting your stokvel journey:

• Choose the right stokvel

It’s important to join a stokvel that is right for your needs: what is the purpose of the stokvel; how often do you have to contribute; are there risks, and where will the money be held?

• Know the rules

Ensure you understand the requirements and rules: what is the contribution amount, payout structure and penalty for late or failed payments?

• Reliability

Know who is managing the stokvel and where they keep the contributions. Stokvels also rely on regular contributions, so ensure that those you’re pooling your money with are reliable contributors and that you can keep up with the payments.

• Choose the right account

Instead of housing cash in a single place, choose a savings account that keeps it safe but also helps the total amount earn interest. That means your money will be worth more at the end and your money’s purchasing power will keep up with inflation.

• Deposit safely

Make your contributions directly into the account through electronic transfer. It’s a safer and faster way of depositing money into the stokvel account, plus you’ll save on bank charges.

Our Society Scheme savings account is an easier, convenient, safer and smarter way to make the most out of your stokvel savings. It helps you grow your money, gives you access whenever you need it, and gives you the opportunity to go cashless. Paying and receiving money electronically is easier, safer, and helps you keep track of things, making managing your money a breeze.

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How to safely manage stokvel savings during withdrawal season

From handling and managing the stokvel savings, to making the payouts, here are some safety tips to keep in mind.

Use self-service banking

Consider using Internet Banking, cellphone banking or ATMs so that you don’t have to go to the bank and stand in a queue. It’s fast, convenient, available any time and makes for easier record-keeping.

Go digital

Use electronic transfers into the members’ accounts instead of handing out the cash contributions to avoid theft or loss, and to ensure everyone gets their money at the same time.

Keep it private

Protect yourself and the other members of the club by never revealing bank visits or announcement about withdrawals or payouts to the public or on social media. Don’t display your cash and vary the days on which you make deposits so that no one knows your routine.

If you are handling cash:

Don’t deposit on high-risk days

Avoid depositing cash on high-risk days, such as Mondays after month-end.

Go prepared

If you’re depositing cash or making withdrawals, take someone with you and don’t display the cash or carry the money in a bag. Also vary the days on which you make deposits This could make you a vulnerable target.

Make gradual withdrawals

If you received a payout electronically, stagger the withdrawals over a few days or weeks so that you don’t take all the money at the same time. Walking around with a larger amount of money could make you vulnerable to fraudsters.

_{Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).}

_{Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.}