FAQ

A susu (also known as a sou-sou, osusu, or asue) is an informal savings club or rotating savings and credit association. It is a traditional practice, particularly in West Africa and the Caribbean, and has been brought to other parts of the world by immigrant communities.

• Group Formation: A small group of trusted individuals, often family, friends, or community members, agrees to participate.

• Regular Contributions: Each member contributes a fixed, equal amount of money to a common fund at a set interval (e.g., weekly or monthly).

• Rotating Payout: On an agreed-upon schedule, one member receives the entire lump sum that has been collected.

• The Cycle Continues: This process repeats until every member of the group has had their turn to receive the payout.

• Trust-Based: The system relies entirely on the trust and social relationships among the participants. There are typically no formal contracts or legal agreements.

• No Interest: Susus are not designed to generate a profit. Members receive the exact amount of money they contributed, just as a lump sum.

• Savings and Credit: For members who receive their payout early, the susu functions as a form of interest-free loan. For those who receive it later, it acts as a structured way to save money.

• Financial Inclusion: Susus are a vital financial tool for communities that may not have access to formal banking services.

A susu (also known as a sou-sou, osusu, or asue) is an informal savings club or rotating savings and credit association. It is a traditional practice, particularly in West Africa and the Caribbean, and has been brought to other parts of the world by immigrant communities.

Here’s how a typical susu works:

• Group Formation: A small group of trusted individuals, often family, friends, or community members, agrees to participate.

• Regular Contributions: Each member contributes a fixed, equal amount of money to a common fund at a set interval (e.g., weekly or monthly).

• Rotating Payout: On an agreed-upon schedule, one member receives the entire lump sum that has been collected.

• The Cycle Continues: This process repeats until every member of the group has had their turn to receive the payout.

Key characteristics of a susu:

• Trust-Based: The system relies entirely on the trust and social relationships among the participants. There are typically no formal contracts or legal agreements.

• No Interest: Susus are not designed to generate a profit. Members receive the exact amount of money they contributed, just as a lump sum.

• Savings and Credit: For members who receive their payout early, the susu functions as a form of interest-free loan. For those who receive it later, it acts as a structured way to save money.

• Financial Inclusion: Susus are a vital financial tool for communities that may not have access to formal banking services.

It’s important to distinguish a legitimate susu from a pyramid scheme. While a true susu is a community-based savings system with no profit motive, scammers have used the name “susu” to lure people into illegal pyramid schemes (sometimes called “gifting circles” or “blessing looms”). These scams promise a large profit and require participants to recruit new members to keep the money flowing, which is a key sign of a fraudulent scheme.

1. Membership and Organization

• Trust is paramount: All members must be people who are known and trusted by the organizer and the group. This is the single most important rule, as there is no legal recourse if a member defaults.

• A “Banker” or Organizer: The group should elect a trusted individual to act as the “banker” or organizer. This person is responsible for collecting the contributions, keeping accurate records, and distributing the funds. In some cases, the organizer might receive a small fee for their services, which should be agreed upon by the group beforehand.

• Clear Roster: A list of all members and the agreed-upon order of payout should be created at the start of the cycle. This ensures everyone knows when their turn will be. The order can be decided by:

  • Pre-determined schedule (e.g., by age, alphabetical order).

  • Random draw.

  • By mutual agreement based on a member’s specific need for the money at a certain time.

• Full Lump Sum: The recipient for that cycle receives the full amount of the collected funds.

• No Interest: Members receive exactly what they put in. There is no interest earned or paid. The value is in the ability to access a large lump sum of money, either as an interest-free loan or as a structured savings plan.

• On-Time Distribution: The organizer must distribute the funds to the designated recipient on the agreed-upon date.

• Transparent Records: The organizer should maintain a clear and accessible record of all contributions and payouts. This can be as simple as a notebook that everyone can review.

• Handling Defaults: A clear plan for what happens if a member fails to make a contribution is crucial.

  • If a member receives their payout early and then defaults on subsequent payments, the group will likely ostracize that person.

  • In some traditional susus, the organizer is responsible for making up the difference if a member defaults. This is a significant risk and highlights the importance of choosing a highly trustworthy organizer and group.

• Dispute Resolution: The group should agree on a process for resolving any disagreements or issues that arise. Given the informal nature of the susu, this is usually handled through group consensus and social pressure.

We will decide as a GROUP to return contributions or continue on with the number of contributors we DO have.

No, banker is exempt.

By 3p.m. (Central) every Friday.

Every Saturday at 9a.m. (Central).