Have you ever hidden your money to avoid overspending, only to end up forgetting where you kept it? You're not alone. Our forefathers devised some of the cleverest ways to save money just to prevent themselves from unnecessary spending, save towards their goals, and for many other reasons.

They kept money under the bed, in the bush, underground, inside walls, with friends, and so on. The Ajo thrift contribution was also one of the savings systems they devised. 

What is Ajo? 

Ajo is an informal way of group contributions that is common among Nigerians. It is called thrift savings or micro savings in English. Ajo thrift contributions typically involve a group of people who come together to form a relationship based on trust and contribute a fixed sum of money towards individual use.

In the Ajo contributions system, a member is chosen to keep all the money and they all take turns to collect the pooled funds. 

Traditional Ajo vs Bankly Group Contributions

The Ajo system allows each member to use his contribution and that of the other members when it's his or her turn to collect the contribution. Each member is expected to add his own contribution regardless of whether it's their turn to collect the pooled funds. 

Here is how Ajo typically works. Let's say a group of ten female friends come together to form an Ajo savings group that runs for ten months (monthly contribution of ₦100,000)  – that way the money can go around within that period and the group is terminated right after. 

A member is then chosen to receive the money in his or her personal account and disburse it to the collector at the end of each month. At the end of the first month, (the first collector) is entitled to receive One million naira (her N100,000 inclusive). He or she is also expected to make the same ₦100,000 contribution the next month till the end of the ten-month rotation period. 

While the traditional Ajo savings system is often seen as a risk-free loan, the disadvantages often outweigh the benefits. There are several cases of abscondment, theft, and the frustrations that come with receiving contributions from parties at the appointed time. 

There are other largely beneficial ways to make group contributions. Credible platforms like the Bankly app help you save, collect, and manage with multiple people in one app. Whether you want to pool money together for an upcoming trip, birthday party, or charity event, or save with your partner, Bankly Group Contributions is the way to go. 

The Group Contributions feature on the Bankly app allows you to save money with trusted friends, family, and other people for different purposes. It’s like a digitized Ajo system with special perks. 

• 15% interest on your contributions at maturity. Group contributions attract 15% interest per annum, which is accrued daily. 

• You can make contributions towards multiple goals (Wedding planning, house rent, group trip, etc.) on the bankly app  – 15% interest will be received on each goal. 

• Each contribution account on the Bankly app is given a unique account number to prevent any confusion. 

• All members can monitor the progress of the contributions and the movement of money in and out of the account. Each member receives a notification for every deposit and withdrawal done. However, withdrawals can only be done by the admin, who can either send full or partial funds to his/her account or a third-party account as agreed with members.

• Withdraw your funds at any time. In an event where the funds in a group savings plan are pulled out before its maturity date or before the target amount is met, it loses all the interest that has been accrued over the period.

How to open a Group contributions account online 

1. Download the Bankly app on ​the Google Play Store or App Store.

2. Open the app and register with your phone number, BVN and NIN. ​

3. Complete the registration process and log in to the Bankly app

4. Navigate to Group Savings from your home screen 

5. Tap “continue” to start the process 

   

6. Add members from your phone contact list

   

7. Tap “Create plan” and start your group contribution

   

There are a lot of stories that prove that the Ajo savings system can be unreliable. 

However, with Group Savings on a platform like Bankly, your money is safe and secure. The next time you need to pool funds from a group of people or contribute towards a project with friends, you can open a group contributions account on a platform like Bankly and save money towards your shared goals.