May 17, 2018
Fun fact: Rotating savings are called adashe in Hausa, ajo in Yoruba and esusu in Igbo.
When it comes to raising lump sums of money, the average person has always been forced to pick from options that range from impossible to life-threatening. For example, you may have to take a loan with a hefty interest you could be paying off for years or you may have to endure the inconvenience of borrowing from multiple people to make up the amount you need.
Rotating savings, a system of raising money with people without shame or the need to pay interest, has long been a far more tolerable alternative.
This system has been around for generations in different cultures, helping communities of varying sizes raise lumps sums of money for their members through regular contributions into a common pool which is accessible periodically on a turn-by-turn basis.
We’ve replicated the same traditional method of saving on ALAT, and you can now start your own rotating savings group with up to to 12 members including yourself.
Follow these steps to create your group and save together:
1. Log in to the ALAT app.
2. Tap Savings & Investments on the app menu and select the Group Savings option on your screen.
3. Look for Rotating Savings and tap START SAVING.
4. On the next screen, name your group, set a monthly contribution for members, decide how many members the group will have and pick a start date.
5. Once your group is created, you’ll be assigned a group code which you can share with anyone you’re inviting to join the group.
There are a few things you should know before you create your savings group:
+ There’s no interest paid on Rotating Savings, but you can always stash your collection and earn up to 10% interest.
+ As the creator of the group, you’ll be the group admin, responsible for making edits to the group if necessary.
+ Monthly contributions are not paid into any member’s account until collective savings are due to be received.
+ Monthly contributions are deducted automatically on the due date and the collective savings are also paid out automatically when they’re due.
+ And of course, everyone you invite needs to be on ALAT to save with you.
Now, round up a few friends and start a group. There’s strength in numbers!