The growing trend of stokvels and the seasonal withdrawals during festive season will require stokvel members to be vigilant and careful. Often stokvels are formed at the start of the year to enable spending in December and a result FNB sees the majority of withdrawals over this period.
Cebile Magongo, strategic business manager at FNB Cash Investments says, “Since October 2023, we have observed Year-on-Year growth of 35% in the number of stokvels opened to date, reflecting how customers are embracing the power of collective savings.”
“Savings from Stokvels are used for a variety of reasons. These funds are used for groceries, school fees, stationery, to help family and friends, and they are also used for holidays. Whilst saving in a Stokvel is beneficial and offers numerous financial and social benefits, it also poses risks as group members can become key targets for criminals. This is more prevalent with those individuals who are receiving their contributions at this time of the year,” adds Magongo.
Stokvel groups and members should be vigilant against fraudsters and criminals who are eagerly waiting to scam and rob them off their stokvel contributions. Moreover, they should be aware that criminals have become advanced in how they target stokvels and its members. This will require them to be more alert when sharing funds and spending in store and online. They should try not fall victim to scams especially fake calls or message alerts pretending to be from the bank or other stokvel members.
Here are a few safety tips for stokvel groups this festive season:
- Avoid cash withdrawals. It’s advisable that all payments are processed through safe digital channels. This will not only safeguard their money but will also help the Stokvel save on cash handling fees as digital payments are free.
- Consider doing all digital payments at the last stokvel meeting, ensuring that when members leave the meeting, their funds have been transferred into their personal bank accounts.
- Avoid announcing stokvel meetings or stokvel money withdrawal dates on social media, to friends or family members. This should only be exclusive to members of the stokvel group.
- Avoid carrying and travelling with large sums of money during this peak season, if you must travel consider doing so in large groups.
- If you are not using digital channels, do not withdraw all the funds at the same time. Consider staggering the withdrawals on different days to ensure that your contributions are safe.
- Make cash withdrawals during business hours when it’s safer with security guards present.
- Avoid making cash withdrawals of club members’ contributions on high-risk days such as month ends, or the day before the big holidays.
“Taking these precautions will ensure that the Festive season remains a safe and joyous time for everyone involved. We also encourage Stokvel members to keep in mind that they don’t need to spend all their money during this period, some savings can be set aside for the upcoming new year,” says Magongo.
PERSONAL FINANCE