Stokvels laugh all the way to the bank

Stokvel members in Alexandra could be among those destined to reap the fruit of the tenacity of this savings project that is highly popular in the townships of South Africa.

According to Lytania Johnson, CEO of FNB’s Personal Segment, the South African Stokvel savers’ growth which has surpassed the R8.3 billion mark in total member contributions since November 2019, has been described as a potent indication of the stokvel members’ financial tenacity in a challenging economic climate.

Johnson revealed that its customers’ stokvel net deposits have increased by 42%, which she said was a testament to the resilience and dedication of South African stokvel savers.
“Stokvels remain among the most popular savings options among our customers who earn entry-level to middle income. While the make-up of stokvels continues to evolve, the principles of trust, community and mutual benefit remain the glue in the management and growth of stokvels.

“Over the years, we’ve digitised our stokvel offering to minimise the risks associated with carrying large sums of cash in contributions or cash withdrawals, and this helps FNB-banked stokvels to manage their money without any hassles easily.”
Sifiso Nkosi, product growth head at FNB Retail Cash Investments said, “The surge in stokvel savings comes against the backdrop of a high-interest rate environment, highlighting the importance of financial discipline among those who use stokvels to accumulate savings for their goals.

“It’s also important to acknowledge that stokvels have a profound significance beyond promoting a savings culture, as they facilitate economic participation for individuals and families,” he said.
In addition, Nkosi said people who save through stokvels generally have savings goals, whether to save for home-related expenses, large purchases, or even school fees.

“As we approach the festive season period, we also urge members of stokvels to avoid exhausting their savings so they can generate even better returns in the future.”
To help stokvels better manage their administration, deposits, and fund distribution using its digital channels, FNB has introduced a digital stokvel account with no monthly account fees since 2020.

Stokvels began receiving interest on the account from just one rand and by using the account, he said stokvels can purchase funeral insurance for their members and enjoy discounts on the premiums based on how many members contribute.
“If a contributing stokvel member passes away due to accidental death, the funeral cover pays out twice as much,” he added.
Additional features of the stokvel account include the ability to check account balances and transactions, add and update members, make safer payments, and make secure payouts with authorisation.

Members of stokvels also have the option of using eWallet, where they can withdraw cash without paying fees or having a bank account. Members can also get cash via Cash@Till at Checkers, Shoprite, Pick n Pay, Boxer, some SPAR, and Usave tills at no additional cost if they receive a payout into their FNB bank account.

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