Take Your Stokvel To The Next Level: Invest

It’s time to take advantage of your stokvel’s group power, beyond bulk buying.

Have you ever thought of moving your stokvel from its founding short term saving mentality principle – be it a social stokvel, burial society, grocery buying scheme or mogoliswano (payment on rotation), to long-term saving?

The reality is stokvels that don’t transform and begin taking advantage of medium to long-term investment options are not living up to their potential. Instead of the funds sitting in the stokvel account, there is the option to invest the money in other ways.

Here are a few investment suggestions to get your stokvel started and geared for the next level:

Have you ever thought of moving your stokvel from its founding short term saving mentality principle – be it a social stokvel, burial society, grocery buying scheme or mogoliswano to long-term saving?

Fixed Bank Deposits

The best place to start when deciding to invest in a fixed deposit account is with your stokvel’s bank. Enquire about the interest your bank can offer you. There are different accounts to choose from, depending on how accessible you want to be and the kind of interest to want to earn.

What the banks are offering:

32-day notice deposit – Standard Bank

The initial deposit can be as little as R250 and your stokvel stands to earn up to 6.5% in interest. A deposit between R10 000 and R24 999 earns 4.33% but you can only withdraw the money after 32 days of notifying the bank.

Fixed Deposit – Nedbank

With Nedbank’s fixed deposit account, the initial investment is guaranteed, nothing happens to the initial sum you deposit. The minimum deposit amount is R1 000 and the investment periods range from six to 60 months. There are no fees or commissions. However, all interest is based on how much you invest in the account and is determined by the bank when it receives funds.

Fixed Deposit – FNB

This investment option only accepts R10 000 or more as the initial deposit. A fixed deposit of R10 000 saved over two years will earn your stokvel 7.7% in fixed interest at FNB. Your stokvel will also enjoy paying no monthly or transaction fees.

Fixed Deposit – Capitec Bank

As an investor, your stokvel can save money for a period ranging between six and 60 months, earning 5.5% interest on the daily balance. The minimum deposit is R10 000 for a single deposit.

If your stokvel account is already with any of the above banks and you would like to explore this investment option, your account’s signatories should visit the local bank branch and speak to a consultant.

Unit Trusts

A unit trust is an investment option made up of pooled funds where small investors buy units. Investment Solutions is a company that specialises in unit trusts and has created a way for stokvels to invest in unit trusts. The programme is endorsed by the National Stokvel Association of South Africa.

Stokvels in unit trusts have a choice of investing a monthly deposit of a minimum of R500 or a lump sum deposit of R30 000.


  • You will have professionals handling your stokvel’s money;
  • You can choose the level of risk you want to take on;
  • Investing in shares, bonds, cash and property can reduce your risk as not all your money is in one place;
  • The longer your stokvel invests in the trust, the more growth the investment is likely to show; and
  • With Investment Solutions unit trusts, payment is issued within 24 hours of withdrawal notification.

Contact: 0860 333 316 or email stokvel@ishltd.co.za

Exchange Traded Funds (ETF)

Much like unit trusts, ETFs are about pooling funds and gaining access to investment at a lower cost to investors (the members of your stokvel). ETFs are a not as risky as investing in a single stock option. Your stokvel won’t have to stress as its investment will be handled by brokers.

The online EFT platform www.etfsa.co.za/stokvels.htm offers services that are geared towards stokvels and other savings clubs.

The annual administration fee, which is deducted quarterly, is 0.7% for investors putting in less than R500 000. The debit order fee is R3,50 and R110 for rejected debit orders.

Visit www.etfsa.co.za for more information.