NATIONAL NEWS - FNB has revealed that Stokvel members have contributed over R1.8 billion since 2020 when its no monthly account fee digital account was launched.

Himal Parbhoo, CEO of FNB Retail Cash Investments, says, "Being a member of a Stokvel is one of the most popular ways for South Africans to develop a saving culture. The challenge, however, has always been ensuring that Stokvel savings are managed efficiently. 

"This inspired us to develop a digital Stokvel account that makes it easy and safer for members to make contributions and share proceeds. In addition, members earn interest on the money they save as a group, which encourages them to save even more. 

"The rising interest rate cycle provides an excellent prospect for Stokvels to capitalise on the trend by holding their savings for a longer period rather than cashing them out."

FNB's Stokvels and Group Savings Head, Sifiso Nkosi, echoes this sentiment, saying, "Stokvels have transformed in recent years, and the future of group savings is being reimagined through digital adoption. According to our data, Stokvels earn the best savings account interest on the market. 

"The good momentum in Stokvel savings has bolstered our efforts to facilitate the promotion of a savings culture among South Africans through a secure and transparent savings platform that generates competitive returns despite the tough economic conditions."

FNB has seen over 80% of Stokvel payments made by its banked signatories. Of the 102 293 stokvel members on FNB’s platform, 46% have opened a transactional account for easier contributions or to conveniently receive their share of proceeds.

'We bring you the latest Garden Route, Hessequa, Karoo news'