Stokvel dividend safety tips for festive season
Most people are looking forward to the holidays, which is also the busiest time of year for stokvel withdrawals.
At this time of year, it’s important for stokvel members who plan to withdraw or share their savings to be aware that fraudsters are looking for ways to defraud them of their hard-earned money.
So, it’s always better to play it safe than sorry.
FNB stokvels and group savings head, Sifiso Nkosi, shares some safe year-end withdrawal tips for stokvels.
Use safer and convenient digital channels:
– while cash withdrawals are possible, arrange for the pay-out to be an electronic transfer into each member’s personal bank account or accounts of their choice.
Stagger your withdrawals:
– do not withdraw all your money at the same time
– make the withdrawals over different days or weeks to ensure your contributions are safe
– avoid making cash withdrawals on high-risk days such as month-end, especially after hours, at busy places, or ATMs.
Safety and security:
– ensure the member assigned to withdraw contributions is accompanied so they don’t have to handle all money alone
– never announce the withdrawal plan on social media or share pictures of the cash, as you might open yourselves to being targeted and defrauded.
Plan how you spend your savings:
– ensure you spend your savings wisely
– there’s nothing worse than spending for the sake of it
– determine which purchases are needs or wants
– remember the festive season is long and many salary earners will only next get paid towards the end of January.
Seek help when in need:
– if you are uncertain how to manage your payout, consult with a financial advisor. They are best placed to advise on how to diversify your payout contribution into long-term investment vehicles.
“This is an exciting time of the year for stokvel members, as many get to enjoy the benefits of their financial discipline over the course of the year,” said Nkosi.
“For those who are planning to cash out some of their savings, we encourage them to do so safely and responsibly.
“Members whose group savings are with FNB are encouraged to use our digital channels to better manage their money whenever and wherever they are.”
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