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What to do with stokvel money

A Fin24 user wants to know how his stokvel's money could be invested. He writes:

Where can we put our stockvel money of about R100 000 a month and get good returns?

Can we insure our members under the stockvel name in case of dissability or death? Please help.

A spokesperson from Standard Bank responds.

Standard Bank offers various options to help our customers get the most out of saving.

Our Society Scheme product aims to offer stokvels, burial societies and society schemes an easy to understand product with the security of predefined members of the stokvel having to sign for withdrawals, making it easy to manage the money.

This ensures that the money earns good interest while making sure that no one person can withdraw the money, keeping it safe so that only the predefined members can withdraw.

Our effective annual rates offered on our Society Scheme account (as at November 26) are:



There are also various other savings and investment products available such as our Money Market call account, 32 Day Notice and Fixed Deposit accounts.

The Society Scheme product doesn’t have disability or death benefits attached to it.

Standard Bank does, however, offer death or disability cover. Customers have the following options to consider:

Accident Protection Plan

The policy pays out up to a maximum of R1 500 000 for accidental death and total permanent disability.

Disability cover

We will pay out a lump sum, of up to R5m if you are permanently unable to do your job, or any other work you would be able to do with your education, knowledge, training and experience, as a result of sickness or injury.

Serious illness cover

Receive a lump sum payout of up to R2m to help you cope with the associated financial impact of suffering from any of the following serious illnesses:

Stroke
Open heart surgery
Heart attack
Cancer

This product is not designed to replace a medical aid or to protect your income, but to help you with other associated costs.

Using this lump sum payment, you will be able to alter your lifestyle to accommodate your condition.

The Standard Bank Primary Hospital Cash Plan

This policy helps you cope with the high cost of a hospital stay by paying you a cash amount for every day that you spend in hospital.

This plan is specifically designed for permanent South African residents between the ages of 18 and 75 years, and pays benefits of up to R1 300 from the first day of hospitalisation in the case of both accidents and illnesses.

The Standard Bank Lifetime Personal Accident Plan

This policy is specifically designed for South African citizens between the ages of 18 and 75 and pays cash benefits of up to R700 000 in the event of accidental death or permanent disablement.

- Fin24

Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.

Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

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