FNB Reports 66% Growth in Stokvel Deposits as More South Africans Save Together

More South Africans are proving that saving together is better than going it alone, with First National Bank (FNB) reporting a 66% year-on-year increase in stokvel deposits. By December 2024, total inflows into FNB Stokvel Accounts surged to R13.3 billion—up from R8 billion the previous year.

According to Himal Parbhoo, CEO of FNB Retail Cash Investments, this massive jump reflects the growing popularity of group saving in the country. “We’re seeing more people join stokvels because they make saving easier, safer and more rewarding,” he said.

The Rise of the Digital Stokvel

At the core of this trend is FNB’s Digital Stokvel Account, launched in 2020. The bank’s data reveals that deposits in these digital accounts have increased by 84%, rising to R10.7 billion in 2024 from R5.8 billion in 2023. The number of stokvel members using FNB also grew by 34% in just one year.

The digital platform removes the risks and costs of cash handling. Members contribute and share funds electronically, which not only improves safety but also boosts returns—thanks to competitive interest rates. FNB reports that its stokvel clients have saved a collective R421 million, including R168 million in avoided cash withdrawal fees and R253 million in interest earned.

Blending Tradition with Technology

Cebile Magongo, Strategic Business Developer at FNB Retail Cash Investments, believes this digital evolution has given stokvels a modern edge while keeping their communal spirit alive.

“Members are spending less time on paperwork and more time strategizing on how to grow their savings,” she says. “We’re even seeing stokvels move beyond basic saving—into investments like shares, unit trusts, and business ventures.”

This shift shows how digital tools are helping South Africans become more financially savvy while still drawing strength from their traditional values of collective saving.

Stokvels: Building Wealth, Not Just Saving

With South Africa’s economic climate still posing challenges, stokvels remain a powerful mechanism for wealth-building—especially when paired with digital innovation.

“The success of our digital stokvel platform shows that group saving is not only alive and well but thriving in the digital age,” Parbhoo concludes.

As more people turn to stokvels to reach financial goals faster and smarter, it’s clear that the power of community, backed by smart banking technology, is changing how South Africans think about saving.

{Source: MSN}

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