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Stokvels boost savings in SA

By Digital Team
27 June 2019
Image supplied.

Image supplied.

Working together and saving as a group has become a major driver in savings culture – here’s more on the trusted stokvel

The humble stokvel has fast become one of the top saving systems in South Africa. It has enhanced the savings culture – and could ultimately work to bolster the economy.

You may have heard about stokvels in your community while growing up, but now 11 million South Africans are members of stokvels with around R44 billion saved in 820 000 stokvels in South Africa annually, according to Nedbank research.

The stokvel market has been touted to be worth more than some of South Africa’s largest businesses, according to the National Stokvel Association of South Africa – which has further highlighted the major role it plays.

Research shows 57% of stokvel users are female, with the most popular types of stokvels being grocery stokvels and burial societies.

The top savers reside in Gauteng, followed closely by Limpopo and North West and KwaZulu-Natal.Nedbank joined the stokvel movement and attracted more than 3 541 Stokvel account holders since March 2018, insuring 88 900 lives through its innovative burial cover solution.

A clear indication that stokvels are ready to enter the formal financial system, provided they can see the benefits of doing so, says head of retail investments at Nedbank Sisa Cikido.

The Nedbank Stokvel Account offers competitive interest rates and access to affordable funeral cover, as well as access to the Nedbank Pay-As-You-Use (PAYU) bank account for further value-added banking services at no additional cost.“Stokvel members are already savers, so the solutions Nedbank offers them are a genuine entry into the formal financial system.

We believe that by helping stokvel members to use their existing savings to grow more wealth, we can make a real contribution to changing the face of the economy and building broad-based wealth,” Sisa says.

To open your Nedbank Stokvel Account today, visit a Nedbank branch or simply dial 120*001*7865835# from your cellphone, to get started and save smart.