A stokvel is more than just a savings group; it helps people build wealth and make their communities stronger.

The end of the year is “stokvel season” – a time when most members receive their payouts. It’s also a great time to take a closer look at your stokvel and make sure that by this time next year, it is paying out more and enabling you to do even more for your community.

Babalwa Nonkenge, Head: Retail Investments at Nedbank shares some ways to make your stokvel work harder for you in 2025.

Use different ways to grow your money

Most stokvels focus on saving and lending money, but there are some steps you can take to make your stokvel do more to make your money grow faster.

For one, your group could look beyond a savings account or store scheme and invest in things like property, stocks or even successful local businesses.

“When stokvels use different types of investments, it helps all members build wealth,” says Nonkenge. “And if you’re worried about risk, why not try a fixed deposit or look into the Nedbank Stokvel Account, which offers competitive interest with no risk or fees.”

Help local businesses to grow

Stokvels have the power to help small businesses in their communities by either buying from them or investing in them to help them grow.

This not only makes the stokvel members part-owners of businesses, it can also help to create more jobs for community members because the businesses will need employees as they grow.

Also, when these businesses do well, they bring money back into the community – so everybody benefits.

Learn about money together

It’s important for stokvel members to learn about money. If members understand things like how interest works, how to make a budget, and how to invest, they will make better money choices.

Learning about money also helps members avoid scams, which is very important for savings groups.

Save money by shopping together

The benefits of being a member of a stokvel don’t end with growing your money. You can also use your membership to save on your day-to-day expenses.

Many stores offer great savings if you buy in bulk. On your own, you may not be able to buy large quantities, but by partnering with other members of your stokvel, you can buy things together to get better prices.

Even if your stokvel isn’t one that specifically focuses on grocery buying, you can still pool your food money every month and get some great bargains on the household items and groceries you all need.

Keep money for emergencies

Unexpected things can happen in life – like medical emergencies or family problems. Setting up your stokvel to have a separate savings part for emergency money can help members when they need it, so they don’t have to borrow money at high interest rates.

Funeral cover is also valuable for stokvel members, so it’s worth looking for a stokvel account that offers funeral policies to members.

“When a stokvel puts its money into the Nedbank Stokvel Account, every member can access up to R10 000 worth of funeral cover ,” Nonkenge explains, “which gives them and their families valuable extra protection.”

Keep your money safe this stokvel season

The holiday season is when many stokvels pay out money to members. Unfortunately, criminals and fraudsters know this, so they target stokvel members to try and steal their cash. If you are receiving a stokvel payment in the next two months, there are things you can do to stay safe.

Try to get your money by bank transfer instead of paid to you in cash. If you need to withdraw cash from the bank, use an ATM in a safe place or where there is a security guard. Also, try not to take too much money at once – that way you don’t have to carry a lot of cash on you.

Finally, don’t tell people when you’re getting your money or what you plan to do with it – and remember that banks will never ask for your personal information by phone or message.

“When stokvels take a thoughtful approach to how they save, invest and work together, they can help their members grow their money and make whole communities stronger.,” Nonkenge concludes.

“With some careful planning, your stokvel can work harder for you in 2025 and help build a better future for all its members.”

This post was based on a press release issued on behalf of Nedbank.