join a community-based stokvel

Here’s why you should join a community-based stokvel. Picture: File/Fotor.

Why NOW is the BEST time to join a community-based stokvel

Over December this unique savings system comes into its own. Here’s everything you need to know to join a community-based stokvel near you.

join a community-based stokvel

Here’s why you should join a community-based stokvel. Picture: File/Fotor.

If you’ve been on the fence and wish to join a community-based stokvel, there are a couple of considerations you should keep top of mind. We’ve already touched on what a stokvel is but, essentially, it’s for community groups who prefer to circumvent formal banking systems. Stokvels are built on trust between community members and like-minded individuals. In that way there is always accountability.


join a community-based stokvel
All the pros to join a community-based stokvel. Picture: File.

Stokvels are a proudly South African phenomenon and were started and sustained by elders (usually women) in informal communities. However, as the cost-of-living crisis has hit, more youngsters and millennials are embracing this highly effective method of saving.

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According to the National Stokvel Association of South Africa (NASASA), there are more than 1 million active stokvels across South Africa. This equates to over 12 million members and an estimated R50 billion in savings annually.

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If you want to join a community-based stokvel, you must consider the different types on offer. Savings, funeral funds, property investments, monthly groceries and annual pay-outs are some of the most common ones.

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By relying on the strength of your community and collective savings, joining a stokvel means an additional stream of income everyone can benefit from throughout the year. These are some of the upsides to a stokvel:


Picture: File.

Each stokvel has its own constitution, and decisions are made collectively by members. Like how the money will be collected, who is in charge of collecting it and where and when it will be invested.


Each stokvel member has an equal voice. Discussions around any concerns or grievances are open and transparent. Accountability when joining a stokvel is key, leading to a culture of open communication.


There are many different stokvels but, depending on the size of yours, the gathering is most often an opportunity to build bonds and friendships within your community. You’re less likely to be fleeced by a friend.


If you believe joining a stokvel group is for you. Be sure to speak to community members you tryst and do your research beforehand. Especially if it is a stokvel outside of your immediate circle or community.

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The safest check is whether they’re registered with NASASA. Likewise, if you suspect fraudulent activity, you can report them on 010 007 2129 or email:


join a community-based stokvel
All you need to know if you want to join a community-based stokvel. Picture: Shutterstock.

Keeping large sums of money at a stokvel member’s house can be temptation to local criminals. So, consider depositing the stokvel’s contributions into an existing member’s bank account. That way it can accrue interest, too. Most major banks like ABSA, FNB, Nedbank and Standard Bank offer such savings schemes.

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This article is for informational purposes only and should not be construed as financial advice. Do you think you’d join a community-based stokvel? Do you have any experience with the above?

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