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STOKVEL PAGES
STOKVEL BANKING
BANKING OPTIONS FOR
YOUR STOKVEL Reap the rewards of being banked
G
one are the days when we hid our stokvel money under the mattress! Times have changed and more stokvel members are realising the importance of making use of banking products and options. There are many benefits, rewards and opportunities available to stokvel members when using products designed especially for stokvel needs. When members pay their money into a bank account, the entire group benefits because the higher the balance in the account, the higher the interest rate. If the money stays in the account and member contributions continue, the group benefits from compound interest, which ensures faster growth of the money in the account. The benefits of banking include regular monthly statements which accurately reflect balances and interest earned. It is easier to keep track of all deposits and withdrawals in the account and the distribution of funds to members can be done directly into individual member accounts, which removes the risks associated with carrying large amounts of cash. Let’s take a look at 3 options designed for stokvel needs.
Bakgotsi Stokvel Account The Bakgotsi account is a special book-based account developed for groups such as clubs, stokvels and societies. The Bakgotsi account helps these groups reach their saving potential and keeps their money safe while it accumulates interest. The minimum opening deposit is R50 and as an example, a balance of R 5 000 in the Bakgotsi account earns 3.20% interest per year, which equals R160 per year (about .44 cents a day and about R13.33 a month). You must remember that the higher the balance in this account, the more interest you earn. Balances of R30 000.01 and above earn 4.90% interest per year. To open a Bakgotsi account a group must have a constitution or written declaration of goals. Three authorised signatories are required on the account, and two signatories must always be present when making withdrawals. This makes the Bakgotsi account safe, especially when money is withdrawn from the account. Benefits of a Bakgotsi account: • Record all transactions with a savings book • There is no minimum or maximum balance • Choose how long you want to save for • No monthly management or service fees • Unlimited online withdrawals at the Post Office branch How to apply You can apply at your nearest Post Office. Do not forget to submit your constitution or set of rules upon application. In order to comply with the Financial Intelligence Centre Act (Fica) regulations, the identity of all the authorised signatories must be verified – so additional documents you need to have with you include identity documents and proof of residential address of all signatories.
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