Protect Your Hard-Earned Money with These Essential Stokvel Safety Tips
Stokvel Safety: Stokvels have long been a cornerstone of community savings in South Africa, allowing individuals to pool resources and achieve financial goals collectively. In recent years, stokvel savings have seen a notable increase, with FNB reporting a 66% rise in deposits by December 2024. While stokvels present a great opportunity for financial security, they also come with risks.
To safeguard your funds, it’s crucial to implement effective safety practices. Here’s a comprehensive list of safety tips every stokvel member should follow.
1. Embrace Digital Transactions
Avoid handling large sums of cash by opting for digital payments whenever possible. FNB’s digital stokvel accounts, for example, allow members to contribute and transfer money electronically, minimising cash-handling risks and saving on fees.
2. Transfer Funds at Meetings
To enhance security, plan to make digital payments during your final stokvel meeting of the year. This ensures that funds are transferred into members’ bank accounts before they leave, reducing the risk of theft.
3. Protect Personal and Group Information
Avoid sharing stokvel details such as meeting dates, withdrawal times, or financial information on social media. Restrict such information to members only to prevent potential scammers from taking advantage of your group.
4. Limit Cash Handling
If cash withdrawals are unavoidable, reduce risks by moving money in groups and choosing non-peak times for cash handling. Carrying cash collectively and discreetly is safer than doing it alone.
5. Stagger Withdrawals for Added Safety
When digital channels are unavailable, consider staggering cash withdrawals over several days. Withdrawing all funds at once makes members more vulnerable to criminals. Spreading the process helps reduce this risk.
6. Make Withdrawals During Business Hours
Plan cash withdrawals during regular business hours when bank security is present. This simple step can greatly reduce the risk of theft, especially compared to withdrawing funds during late or irregular hours.
7. Avoid High-Risk Days
Month-end or the day before major holidays are prime times for criminals. To avoid being targeted, schedule transactions on quieter days when criminal activity is less likely.
8. Keep Communication Secure
Group chats can be compromised, so avoid discussing financial details on unsecured platforms. Instead, use encrypted messaging apps and ensure that only trusted members have access.
9. Stay Informed About Stokvel Innovations
As stokvels evolve, some groups are diversifying by investing in shares or unit trusts. Stay updated on new financial tools that could offer both security and growth for your group savings.
Final Thoughts
Stokvels remain a powerful way to save collectively, but safety must be a priority. By following these practical tips, your group can reduce risks and continue to thrive financially. As stokvels grow and adapt to the digital age, maintaining security practices is more crucial than ever.
Also read: How SASSA Grant Recipients Can Avoid Loan Traps in 2025: Tips for Financial Security
