What is a savings circle? How ROSCAs, stokvels, chamas and susus work
By SendPay Business · · 2 min read
A savings circle, known to economists as a rotating savings and credit association (ROSCA), is a group of people who each pay a fixed amount into a pot on a regular schedule. Each round, one member takes the whole pot, until everyone has had a turn. They run on trust and are used by millions of people around the world.
How a savings circle works
- A group agrees the amount, how often to pay and the order of turns.
- Every member pays in each round.
- One member receives the full pot that round.
- The circle ends when every member has received the pot once.
Names around the world
They go by many local names: stokvels in South Africa, chamas in Kenya, susus in West Africa and the Caribbean, and tandas in Mexico and parts of Latin America. Diaspora communities often keep running them after moving abroad.
Risks to know
The main risk is a member who stops paying after taking the pot early. Cash can also be lost or stolen. Clear written rules, trusted members and recorded payments all help.
Where SendPay fits
SendPay lets you launch your own money app under your brand, with GBP, EUR and USD accounts, transfers, branded Visa cards, payment links, invoices and subscriptions, powered by licensed partners. A community could use subscriptions and transfers to collect and pay out a circle's money with a clear record. SendPay isn't a bank and doesn't offer lending.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
How do I plan a savings circle?
Work out the pot, the date of every turn and what your turn means.
Savings circle calculator →How much should I save each month?
Work out the monthly amount to reach a goal by a set date.
Savings goal calculator →How is a credit union different from a bank?
Credit unions are owned by their members.
Credit union vs bank →How do I start a money app for my community?
Build around a group you already know and trust.
Community money app →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.