Understanding Committee Savings
Committee savings, also known as rotating savings and credit associations (ROSCAs), are a time-tested method of group saving that combines financial discipline with community trust.
What is a Committee?
A committee is a group of trusted individuals who agree to save money together over a fixed period. Each member contributes a set amount regularly (e.g., monthly), and one member receives the total pool each period. This continues until every member has received their share.
Example Scenario
Imagine a committee with 10 members, each contributing Rs. 5,000 monthly. Every month:
- Total pool: Rs. 50,000 (10 × Rs. 5,000)
- Duration: 10 months (one turn for each member)
- Each member gets Rs. 50,000 once during the cycle
How Does It Work?
For Early Recipients
- •Get access to a large sum early in the cycle
- •Continue paying monthly until cycle ends
- •Essentially an interest-free loan
For Later Recipients
- •Pay monthly until their turn
- •Receive total amount later in the cycle
- •Acts as a forced savings mechanism
Key Benefits
- No interest or banking fees
- Enforced savings discipline
- Access to larger sums without formal loans
- Strengthens community bonds
- Simple and transparent process
- Flexible payment schedules
Important Considerations
Before Joining a Committee
- ⚠️Ensure you can maintain regular payments throughout the cycle
- ⚠️Join only with trusted individuals or through a reliable platform
- ⚠️Understand your position in the rotation and plan accordingly
- ⚠️Keep track of all payments and receipts
Why Use Waseela?
Waseela modernizes the traditional committee savings concept by providing:
- Automated payment tracking and reminders
- Secure digital records of all transactions
- Built-in communication tools for members
- Transparent member management
- Easy setup and invitation system
- Mobile access to committee details anytime
Ready to Start?
Download Waseela now and experience the easiest way to manage your committee savings.