Johannesburg - Stokvels or saving clubs are proving to be resilient against the recession as consumers would rather close a bank account than admit to friends and family that they're struggling, according to Old Mutual's newly-launched savings monitor.

Half of South African households are saving less than they did a year ago, as consumers find themselves over-indebted.

According to the research, 31% of households were saving for their children's and their own education, about 19% were saving for a deposit to buy a house, and 15% were saving to pay off debt.

The data also showed 22% of households were putting money away to buy a car. Entrepreneurship was less of a priority, as only 7% were saving to be their own bosses.

About 54% of households are putting less money into savings accounts. Stokvels, however, have maintained their appeal, recording a mere 10% decline in the last year, with 43% of black households using them as a savings vehicle.

"Stokvels have remained resilient during this strong time, demonstrating their broad appeal," said Crispin Sonn, director of corporate affairs at Old Mutual.

"It presents a challenge to the financial services sector to find creative ways of incorporating social contracting into the formal savings arena."

Banks have started incorporating simpler, less intimidating attitudes towards customers, especially those from lower-income households. Capitec already offers a choice of only three simplified banking products and low fees, while First National Bank recently announced its EasyPlan which will cater especially for lower-end customers.

- Fin24.com