Rotating savings groups
How does a tontine (ROSCA) work?
A tontine, or ROSCA, is a group whose members contribute on an agreed schedule. At each turn, one member receives the pooled contributions until everyone has had a turn. Names and rules vary across communities.
Understand the commitment
Write down contribution amounts, dates, turn order, late-payment rules, record keeping and how disputes will be handled before the first payment.
Check before acting
A member may stop contributing after receiving the pool, or the organizer may mishandle money. Contribute only what you can afford. A rotating savings group is not a donation or guaranteed income.