Group savings typically refer to a financial arrangement where a group of individuals comes together to pool their resources and save money collectively. This can take various forms and may be organized for different purposes. Here are a few common types of group savings:
- Rotating Savings and Credit Associations (ROSCAs): Also known as “sou-sous” or “chit funds,” ROSCAs are informal savings groups where a fixed amount of money is contributed by each member on a regular basis (weekly or monthly). The total amount collected is then given to one member in rotation until each member receives the pooled funds.
- Investment Clubs: A group of individuals may form an investment club to pool their money for investment purposes. Members contribute money regularly, and decisions about how to invest the pooled funds are made collectively.
- Employee Savings Plans: Some workplaces organize group savings plans for their employees. Employees may choose to contribute a portion of their salary to a collective savings account, and the employer may match these contributions.
- Community-Based Savings Groups: In some communities, people come together to form savings groups with a common goal, such as saving for a community project, funding small businesses, or supporting each other during emergencies.
- Online Savings Pools: With the rise of digital platforms, there are now online tools and apps that facilitate group savings. Members can contribute money, set savings goals, and track their progress through these platforms.
