Stokvels warned to be vigilant over festive season
The head of Stokvels and Group Savings at FNB Sifiso Nkosi has warned against sharing large amounts of money in cash.
He has urged stokvels to rather use electronic funds transfers.
Nkosi's caution comes after two incidents where stokvel members were targeted and robbed thousands of rands.
Over the weekend a group of women was robbed R60 000 cash by armed criminals during their year-end meeting at a house in Ga-Mamabolo, Limpopo.
In Mpumalanga a woman was shot and killed by robbers during a stokvel meeting in Masoyi near White River. The robbers made off with undisclosed amount of cash.
Nkosi advised stokvel members planning to cash in some of their savings this festive season to do it safely and responsibly.
"At this time of the year, it's important for Stokvel members who plan to withdraw or share their group savings to be aware that fraudsters are looking for ways to defraud them of their hard-earned money. So, it's always better to play it safe than to be sorry."
Nkosi shared some safe year-end withdrawal tips for stokvels:
1. Use safer and convenient digital channels
While cash withdrawals are possible, arrange for the club’s pay-out to be electronically transferred into each club member’s personal bank account or accounts of their choice instead of collecting cash contributions. This option is safer than withdrawing large sums of money, which exposes you to many forms of risk.
2. Stagger your withdrawals
Do not withdraw all your money at the same time. Consider staggering the withdrawals over different days or weeks to ensure that your contributions are safe. Avoid making cash withdrawals of club members’ contributions on high-risk days such as month ends, especially after hours, at congested places, or at ATMs.
3. Safety and security
Ensure that the Stokvel signatories assigned to withdraw the contributions are accompanied by another club member to avoid handling money alone or falling victim to robbery. Never announce the stokvel withdrawal plans on social media or share pictures of the cash, as you might open yourselves to being targeted and defrauded.
4. Plan how you spend your savings
Ensure that you spend your savings wisely. There’s nothing worse than spending for the sake of it. Rather, plan how you will be spending your hard-earned savings by determining which purchases are needs or wants. It’s also important to remember that the festive season is long and that many people who earn salaries will only get them towards the end of January.
5. Seek help when in need
If you are uncertain how to manage your Stokvel savings pay out, consult with a financial advisor. They are best placed to advise on how to diversify your pay-out contribution into long-term investment vehicles.
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