Surge in Stokvel Account Deposits: South Africans Embrace Collective Savings

Growing numbers of South Africans are discovering that saving money in groups can work better than trying to do it alone, this is according to FNB’s recent stokvel data.

Himal Parbhoo, CEO of FNB Retail Cash Investments, emphasizes the shift, stating, “More people are joining stokvels to make savings easier and safer. The bank’s data supports this with total inflows in its FNB Stokvel Accounts growing to R13.3 billion by December 2024, up 66% from the R8 billion recorded in December 2023.”

The data further revealed a 34% increase in the total number of FNB Stokvel Account members within just one year. Stokvels are becoming increasingly popular because individuals realize the power of teamwork in achieving financial goals. Whether with colleagues, business partners, friends, or family, saving as a group yields better results.

Parbhoo credits much of the membership and deposit growth to FNB’s digital account innovations. The FNB Digital Stokvel Account, launched in 2020, offers safer and easier financial management for groups by eliminating cash handling fees. This capability has helped customers save a total of around R168 million in cash withdrawal fees, enhanced by R253 million in earned interest—resulting in over R421 million saved.

Another advantage is that all savings earn interest, offering members more than their mere contributions. The digital stokvel’s growth rate jumped 84% to R10.7 billion, compared to R5.8 billion the previous year, according to Parbhoo.

Cebile Magongo, Strategic Business Developer at FNB Retail Cash Investments, notes that the convenience of digital stokvels is a major attraction. “With FNB’s Digital Stokvel Accounts, members spend less time on paperwork and more on planning financial growth. Many stokvels are now venturing beyond savings to investments in shares, unit trusts, and even starting businesses together.”

The strong growth in FNB’s Stokvel platform demonstrates how traditional group saving, combined with modern banking technology, helps more South Africans build wealth. As Magongo concludes, the success of digital stokvel solutions reflects a growing comfort with digital banking and a commitment to the tradition of communal savings.