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What is a social savings club?
An interactive, social, and informal association formed upon a core of participants who agree to make regular contributions to a fund which is given, in whole or in part, to each contributor. The pool of funds will rotate each cycle until each member of the group has had a chance to receive the pool of funds. An alternative financial vehicle.
Christmas club accounts are an example of this type of account, which provide a way to save in advance for larger expenditures during the holidays.
Who can join the community?
Anyone, verified, and with a clear background check.
Can I contribute and receive payout in USD?
Yes.
Contribution/Payment
The payment integrator pre-screen e-Checks for potential risks, and helps reduce the potential for bounced payments that result in unwanted bank fees. Bank Authentications require your customers to sign in using Plaid once they've accepted a Payment Link, and reduces the risk of bad accounts with insufficient funds. With Bank Authentication, only customers with sufficient funds can proceed with completing the payment link. Once they've linked an account with sufficient funds, the E-check will be populated by Plaid, so it becomes easy and secure to send a check.
Is a background check required?
Only if you are selected. You must settle invoice before being approved to enter app. The invitation will expire in 7 days.
Contribution method
We offer two methods to make a contribution.
- Offline - contribute via chase, Zelle, Cashapp, or Venmo. Contact us at info@socsavingsclub.com before selecting offline.
- Online - contribute via in-app payment integrator.
Connecting financial account -
https://support-my.plaid.com/hc/en-us/articles/4410328283287-Why-can-t-I-find-my-financial-institution-when-attempting-to-connect-it-to-an-app-or-service-using-Plaid-
Trouble shooting tips for connecting your financial account -
https://support-my.plaid.com/hc/en-us/articles/4410324754455-Troubleshooting-tips-for-connecting-your-financial-accounts-using-Plaid
Financial account vendor privacy and security -
https://support-my.plaid.com/hc/en-us/categories/4405964125591-Privacy-and-Security
What is the purpose of the invite reward program?
In order for the community to run efficiently, we offer rewards, discounts, and other special incentives as a way to attract and retain members.
What are the benefits of a savings club?
1. Motivates and disciplines you to save.
Some people find it easier to exercise when they have an exercise buddy, and others find it easier to save when they do it in a group that shares a common goal. Saving takes a lot of self-discipline and it is easier if you have the support of friends or family.
2. Emergency fund
A savings club is a great way to build an emergency fund. It can also be a great way to save enough money for school/college, or for any life’s unforeseen events.
3. It is a form of interest-free funds
Depending on how your savings club is structured, it can be a way of obtaining interest-free funds from your friends or family since you are basically lending each other money on a rotational basis.
Advantages and Disadvantages of Savings Clubs
The most significant advantage of setting up a savings club account is behavioral, as in effect they make saving automatic and similar to paying a bill. This way savings club accounts force the savers to make regular contributions to an account towards a specific goal or schedule. In this way, savings clubs in theory should reduce reliance on credit cards and other debt instruments for such purposes.
One disadvantage, however, is that there may be conditions in place to prevent a member from accessing the funds early. If the savings club generates interest, early withdrawals may force the depositor to sacrifice any of the profits while the funds were in the account.
