Stokvel guide
How to start a stokvel
To start a stokvel, gather a small group of people you trust and agree on the type of stokvel, the monthly contribution and the payout order. Write those rules into a constitution everyone signs, open a stokvel bank account with two or three signatories, and keep a record every member can check.
Step by step
- 1
Choose your members
Start with 5 to 15 people you know and trust: family, colleagues or neighbours. Everyone must be able to afford the contribution every month for the whole cycle.
- 2
Decide the type of stokvel
Rotational (one member is paid each month), grocery (a bulk share-out in December), investment (the pool is invested and grows), or burial (cover for funeral costs).
- 3
Agree the contribution and due date
Set one amount and one date, for example R1 000 by the 5th of every month. Agree the fine for paying late.
- 4
Agree the payout order
For a rotational stokvel, draw names or agree the order at the first meeting and minute it so nobody can dispute it later.
- 5
Elect office bearers
A chairperson to run meetings, a treasurer to keep the record and a secretary to take minutes.
- 6
Write and sign a constitution
Put the rules in writing: contributions, payouts, fines, leaving the group, what happens if a member dies, and how disputes are settled.
- 7
Open a stokvel bank account
Most major South African banks offer a group or stokvel account. You will usually need the signed constitution, minutes naming the signatories, and their IDs and proof of address.
- 8
Keep a record everyone can see
Record every contribution and payout with proof, and share the statement with members regularly. This is what prevents disputes.
Choosing the right type of stokvel
Rotational (savings) stokvel
Each month every member contributes and one member receives the whole pool. With 10 members contributing R1 000, each member receives R10 000 once in the ten-month cycle.
Grocery stokvel
Members save all year and buy groceries in bulk in December, often at a wholesaler discount, then share them out.
Investment stokvel
The pool is invested (a savings account, unit trusts or property) and members share the growth. This needs stronger rules on withdrawals and how returns are split.
Burial society
Members contribute so that funeral costs are covered when a member or their family dies. Many burial societies pair this with a registered funeral policy.
Rules that prevent the most common fights
- What happens when a member who has already been paid stops contributing.
- Whether a member can swap their payout month with someone else.
- How late fines are calculated and what they are used for.
- Who can withdraw money from the bank account, and how many signatures it needs.
Start from our free stokvel constitution template and adapt it to your group.
Is a stokvel legal in South Africa?
Yes. Stokvels are recognised in South African law and are exempt from the Banks Act on conditions that include having a common bond between members and belonging to a self-regulatory body such as the National Stokvel Association of South Africa (NASASA). Check the current conditions with NASASA before your group grows large.
Questions
How many people do you need to start a stokvel?
There is no fixed minimum, but most stokvels have between 5 and 20 members. Fewer members means a shorter rotation; more members means a bigger payout but a longer wait.
Do we need a bank account for a stokvel?
It is strongly recommended. A stokvel account with two or three signatories protects the group’s money from any single person, and gives you a bank statement to check contributions against.
Do stokvels pay tax?
Contributions and rotational payouts are generally not income. Interest earned on the stokvel’s bank account or investment returns may be taxable. Speak to a tax practitioner if your stokvel invests.
What documents do we need to open a stokvel account?
Usually a signed constitution, meeting minutes that name the signatories, and the signatories’ IDs and proof of address. Requirements vary by bank, so check with your branch.
Run your group on PulaPool
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