South Africans Are Depositing Billions Into Stokvel Accounts

Deposits into FNBs Stokvel accounts in South Africa have surged by 66 from R8 billion in December 2023 to R13.3 billion in December 2024.

Stokvels are credit schemes in which a group of people enter into an agreement to contribute a fixed amount of money to a common pool weekly, fortnightly or monthly, according to the National Stokvel Association of South Africa NASASA .

In a statement on Tuesday 6 May, FNB revealed that the total the total number of its Stokvel Account members grew by 34 in just one year, partly driven by competitive interest rates.

Our banks digital stokvel accounts have grown quickly, with savings up by 84 to R10.7 billion, compared to R5.8 billion the year before, FNB Retail Cash Investments CEO Himal Parbhoo said.

The bank launched a digital version of the account in 2020. Account holders do not pay cash handling fees.

This has helped our customers save a total of around R168 million in cash withdrawal fees and paid over R253 million in interest, helping customers save over R421 million - money that stays in their accounts and continues to grow, FNB said.

Members are also looking beyond savings and are starting to invest in shares, unit trusts and even starting businesses together, FNB Retail Cash Investments Strategic Business Developer Cebile Magongo added.

The success of our digital stokvel solution shows that South Africans are becoming more comfortable using digital banking and considering investments, while still valuing the tradition of saving together, she explained.

A 2024 study by Ipsos revealed that there are over 800,000 stokvel groups in South Africa.

These groups have more than 11 million members and had saved over R50 billion at the time.