Bank sees increase in stokvel savings: Here are some safety tips

Stokvels have been a popular way for South Africans to pool resources and support one another financially. This method of saving spiked among bank users in 2024, as FNB saw an increase in deposits being made into the bank’s Stokvel Accounts.

The growth can be attributed to the belief that saving money in groups is more effective than trying to do it alone.

Himal Parbhoo, CEO of FNB Retail Cash Investments, said their Stokvel Accounts had received deposits totalling R13.3 billion by December 2024, representing a 66% increase from the R8 billion deposited by December 2023.

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More stokvels in SA

He added that the bank’s data showed a 34% increase in Stokvel Account members over the past year.

“Stokvels are becoming increasingly popular because people are recognising that when they team up with others, whether colleagues, business partners, friends or family members, they are more successful in their saving efforts.”

Much of this growth has been fuelled by the bank’s digital stokvel account, which allows members to contribute and share money electronically, reducing risk and eliminating cash handling fees.

Digital stokvel account

The change comes amid continued growth in stokvel participation. By April 2024, total deposits had exceeded R9.6 billion—a 15% increase from the previous year. Even in a challenging economic climate, FNB noted that stokvel members maintained steady financial discipline, driven by the convenience of digital savings management.

“Members can further make contributions and share money electronically, avoiding the risks of cash while saving on fees.”

Cebile Magongo, strategic business developer at FNB Retail Cash Investments, said that the convenience of digital stokvels is a significant drawcard.

Their data has also shown that many stokvels are starting to look at expanding their offerings beyond savings, and enhancing growth by investing in shares, unit trusts, and even starting businesses together.

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Safety tips for stokvel members

1. Avoid cash withdrawals: Whenever possible, it is advisable to process payments through safe digital channels. This protects the money and eliminates the need to handle cash, which can incur unnecessary fees.
2. Ensure funds are transferred at meetings: Consider making digital payments during the last stokvel meeting of the year. This ensures that funds are transferred into members’ personal bank accounts before they leave the meeting, reducing the risk of carrying large sums of money.
3. Keep stokvel details private: Do not share meeting dates, withdrawal times, or stokvel financial details on social media or with non-members. This information should remain exclusive to the group to prevent exposure to potential scammers.
4. Avoid carrying large amounts of cash: If members must carry cash, it is best to do so in groups for added security. Additionally, avoiding travelling with large sums of money during peak times can significantly reduce the risk of theft.
5. Stagger withdrawals: If digital channels are not being used, consider staggering the withdrawals over several days to minimise risk. Withdrawing all funds at once makes members an easier target for criminals.
6. Withdraw funds during business hours: It is safer to make cash withdrawals during business hours, when security is more likely to be present.
7. Be mindful of high-risk days: Avoid withdrawing large sums of money on high-risk days, such as month-end or the day before major holidays. These are often when criminals are most active, knowing that people are receiving their payments.

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