Have yall heard of a Susu/Savings Club before?

[tjax03]

My brother told me about this about investing all money into a pot and then getting paid out from that pot. So basically lets say 10 people put in $100 and they divy out $1000 to one person , then you pay back in and the next person gets paid until everyone gets paid out.


Have yall heard of this before? Are they legit? Is there any financial benefit to being in a savings club?

 

[Macallik86]

That is a glorified pyramid scheme

 

[Obreh Winfrey]

Anything where you gotta pay in and recruit other people to pay in as well you should avoid.

 

[get these nets]

My brother told me about this about investing all money into a pot and then getting paid out from that pot. So basically lets say 10 people put in $100 and they divy out $1000 to one person , then you pay back in and the next person gets paid until everyone gets paid out.


Have yall heard of this before? Are they legit? Is there any financial benefit to being in a savings club?

This is used in place of traditional banking system in foreign countries and among immigrant populations here. My relatives have participated.
I don't get it, or the benefit of it, but the benefits are probably clear based on the societies the systems came out of.

That is a glorified pyramid scheme

Anything where you gotta pay in and recruit other people to pay in as well you should avoid.

Not a pyramid scheme, it has a set group of people, usually people who have known each other for years. Either kinsmen, fellow church members or co-workers .

 

[tjax03]

This is used in place of traditional banking system in foreign countries and among immigrant populations here. My relatives have participated.
I don't get it, or the benefit of it, but the benefits are probably clear based on the societies the systems came out of.




Not a pyramid scheme, it has a set group of people, usually people who have known each other for years. Either kinsmen, fellow church members or co-workers .

Yea Im trying to figure out the benefit of it when you have to pay in for the next person to get money.

It seems like you can do the same thing in a savings account.

 

[Tug life]

I never really understood it to a certain degree because I figure I could do the same with a savings.

But you also have to do it with people you really trust cause what stops a person from getting a $10,000 payout and just leaving.

 

[BaggerofTea]

That is a glorified pyramid scheme

So is insurance.

If what people pay out and pay in calculated correctly, the bottom shouldnt fall out in normal circumstances.

 

[Rell Lauren]

So is insurance.

If what people pay out and pay in calculated correctly, the bottom shouldnt fall out in normal circumstances.

I don't think it's a fair comparison. Insurance, you're betting on yourself in the event the worst happens you're protected in some form.

With a su su (sp?), you're putting money into a pot on a regular interval until you get your turn. You're better off saving that money because you cannot leave the pool once you get your cut. You must continue to contribute until everyone is selected. Depending on the amount required to join, you can leave the arrangement in the same situation that you were in before.

 

[Ghostface Trillah]

Not a pyramid scheme. People who call it that have no idea what they're talking about. The correct term is merry go round investing.

It comes from a time when banks wouldn't just take everybody's (colored people's) money. It was really just a savings account with a lump sum draw. The way banks work now you could pretty much just set up a weekly deposit into a savings account. But if you want a big chunk of money in the near future this helps out a lot like a no interest loan.

 

[SuavePrince]

Yeah its a West Indian group Savings from what I know. my mom been doing it for years with family and friends.

 

[tjax03]

Yeah its a West Indian group Savings from what I know. my mom been doing it for years with family and friends.

How does it work though? is it pretty much you put money in and get a payout of what you put in on a rotation?

 

[SuavePrince]

How does it work though? is it pretty much you put money in and get a payout of what you put in on a rotation?

Yeah something like that I really can’t explain it up to this day but it’s not a scam. My mom or gf knows how to explain it well.

 

[⠀⠀⠀]

sound su su suspect.

 

[RisingSon]

in my opinion that seems to only benefit those who are having problems being responsible with their finances. basically people who spend 90% of what they bring in, over a weekend. I suppose the pro is that the susu prevents them from such reckless behavior.

however it seems ridiculous because you're relying on people who can't handle their money to be responsible with money.

all in all I don't see a benefit for someone who is responsible financially.

 

[Don Diego]

Nothing new op getting my susu payout next month 12,000 200 a week for almost a year. Its a commitment but it works