Banking options for your stokvel

Reap the rewards of being banked

Gone 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 This makes the Bakgotsi account safe, especially when money is withdrawn from the account.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.

Nedbank Stokvel Account

There are great benefits with the Nedbank Stokvel Account! You’ll get R10 000 burial cover for each member of your Stokvel for only R20 per member per month. (Stokvel members need to be between 18-65 years of age to qualify for the burial benefit.) This can be used to cover any costs associated with the burial. And, Nedbank will arrange transport of the deceased person to anywhere in South Africa. You’ll get up to 10% discount on groceries or school supplies when you shop at selected partner stores. You’ll earn great interest rates for savings so that your stokvel money can grow even faster.

Each stokvel member can open a free Pay-as-you-use account on the Nedbank Money app and pay no monthly maintenance fees and there’s no limit on how many members can save together.

To open a Nedbank Stokvel Account you will need:

A minimum of R100 and the following documents: • A valid South African identity card/ document or a valid passport with a valid permanent residence permit for each signatory. • Proof of residence, such as a utility bill, rental lease or phone account with the names and physical addresses of each signatory. • A copy of the stokvel’s constitution.

Proof of the stokvel’s address. • A copy of the minutes of the meeting in which the decision was made to open a

Nedbank Stokvel Account.

How to

apply

To get started, simply dial *120*001*7865835#

For bulk-buying stokvel groups - The Smart Shopper Stokvel Card

One retailer catering to the growing needs of stokvels is Pick n Pay who launched the Smart Shopper Stokvel card in 2016, which caters specifically for stokvel groups saving for groceries. The card provides all the benefits of the Smart Shopper loyalty programme as well as additional grocery and product promotions. General Manager for Money & Mobile Services at Pick n Pay, Papi Rapolai says one of the biggest benefits of the Smart Shopper Stokvel card is convenience and reduced cost for members.

Stokvel Smart Shoppers will receive free delivery for purchases over R30,000 within a 15km radius of its participating stores. A Smart Shopper Stokvel Champion is also available to assist stokvel groups with queries and telephonic orders. They will also provide in-store assistance, particularly with regards to separating and packing orders, offering customers both improved convenience and value.

Another benefit for Smart Shopper Stokvel cardholders is that they can deposit the money directly to Pick n Pay to pay for their orders. This means that stokvel members never have to put their savings at risk by withdrawing - or carrying - large amounts of cash. The retailer has also partnered with a reputable South African retail bank to offer stokvels a dedicated account with competitive interest rates on their savings. Rapolai reports that while there are currently 63 Pick n Pay stores participating in the Smart Shopper Stokvel programme, the intention is to include all stores in future. As part of its stokvel solution, Pick n Pay has also partnered with various wealth, health, and wellness providers to host annual Stokvel Community Indabas within communities across the country. These events offer financial fitness, health and wellness classes, and include talks on community safety, drug awareness, and healthy eating. Stokvel groups that attend the indabas also stand the chance to win various prizes, such as a holiday to an exotic location for up for 20 members.

“While stokvels were originally established as a group savings vehicle they have developed a hugely social element. Members are generally very community minded and support and help each through tough times such as bereavements,” explains Rapolai. “In these uncertain economic times, stokvel savings are a guarantee that a family will be able to put food on the table and that their savings benefit from group discounts. Pick n Pay’s Smart Shopper Stokvel card will keep enhancing its offering to develop responsible solutions that benefit stokvel groups.” He adds that the retailer hopes to raise the bar in the industry and encourage its competitors to offer stokvels similarly good deals in the future. To sign up for a Smart Shopper Stokvel card and to learn more about its benefits: Visit your nearest Pick n Pay Hypermarket or select supermarkets to sign up and activate your Stokvel Smart Shopper card in-store. Alternatively, SMS “STOKVEL” AND YOUR GROUP NAME to 45117 and Pick n Pay will call you back to get more information about participating stores nearest to you. (standard SMS rates apply).