The Nedbank stokvel account allows a group of people to save money in one account but how does it really work? This is an overview of how the Nedbank Stokvel account works.
What is a Stokvel account?
A stokvel account is basically a group savings account. All members of the stokvel can be registered into this account and make contributions directly into the stokvel account. Stokvel accounts are offered by most of the big banks in South Africa, except Capitec Bank.
The reason why people put their money in stokvel accounts is because they don’t trust that one person will handle the money correctly. The treasurer might take the money and use it for personal things and thereby causing conflict within the members of the stokvel.
How does the Nedbank Stokvel work?
The Nedbank Stokvel introduces a funeral cover in your savings account. Each member of the stokvel will automatically get a funeral cover, this is great if you plan on having the stokvel for a long term. Each member will have to pay an additional R20, it will automatically be deducted from the balance of the stokvel account.
To register for this account, you need a minimum of R100, the IDs and proof of address of all members and other documents.
Conclusion
This was an overview of how the Nedbank Stokvel account works. Do you have any thoughts or questions? Comment below.
