Stokvels help families save
Whiphold Ltd, the multi-billion Rand Soweto stokvel which is listed on the Johannesburg Stock Exchange provides one of the best examples of the power of collective saving. Known by its township name, Stokvel, this concept is now punted by a local bank to improve local savings, and to afford families a means of overcoming the extreme levels of household indebtedness.
Bank Windhoek advised this week that individuals and families who find it difficult to save even only N$50 must considered going the stokvel route.
“Saving as a group could help with the problem of a saving commitment and discipline, as the pressure from your saving peers will force you to commit to put money away.
Bank Windhoek offers a bank account that allows a group of people to deposit their money together in one saving account, to save collectively towards a common goal.
This account is called a GroupSave” the bank said
The Bank Windhoek GroupSave account is meant for friends, sport teams, social clubs, families, stokvels and other groups that want to save towards a common goal.
“The common goal can either be to save for a rainy day to cover the costs of funeral services, medical expenses, unforeseen events, weddings and birthday celebrations or simply to save and invest.
Some can also take the form of the traditional South African concept of stokvels, where members make regular monthly deposits into the saving account and take a turn in receiving a once-off lump sum to use however they wish,” said Bokkie Cloete, Manager: Business Development (Traditional Banking Channels) at Bank Windhoek.
Bank Windhoek’s GroupSave account has a minimum opening deposit of N$100, whereafter a monthly deposit of at least N$100 must be made to a maximum of N$60,000 per year.
The account is affordable as there are no monthly service fees and no deposit fees. Over-the-counter withdrawals are done at a reduced charge, while balance enquiries within the bank are free of charge.