Tanda and eMoneyPool: How a Savings Cohort Works and Where to Find Them

We all have big expenses that our personal savings won’t cover. Between occasions like saving for a friend’s wedding, vacations, new cars, and home renovations life can get expensive. What if you could pool your personal savings with a group of people and take turns spending the larger pot of money? 

With a savings cohort, or app like eMoneyPool, you can. Also known as a “Tanda” or “Susu”, group rotating savings funds make otherwise impossible expenses doable. It’s easy to get started if you understand how a savings cohort works and how to join. 

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What’s a “Tanda”?

“Tanda” is a Latin American term for a group of people who share their savings, rotationally. One member is loaned the full pot every round the money is distributed. The recipient of the pot then repays the loan and the funds are distributed to the next person in line.

Apps like eMoneyPool take this idea and put it into action, enabling users to save with partners, friends or strangers to meet their goals. While the idea of a “Tanda” goes back centuries, modernizing the act of pooling funds in a savings rotation can translate the idea to your bank account.

How does a savings cohort work?

Uncertainties around how a savings cohort could actually function in real time keep some people from participating in them. What if someone doesn’t pay? How can I be sure the people in my savings cohort are responsible? How is the order of who receives funds decided? 

eMoneyPool addressed all of these concerns in the layout of its app. Functioning as low-interest and short-term accounts, these services outline exactly how much you and your partners owe every month. With a clear statement of your goals, payment history, goals and overall balance, it’s easier and more reliable to participate. 

You might have to pay interest depending on the type of account you choose to open and the service facilitating your savings cohort. It’s standard for the first recipient to be charged a higher interest rate than the final recipient of the money pot. This evens the playing field by incentivizing the last participant to contribute to the pot longer than the rest of their group.

What are the benefits of participating in a savings cohort?

Many people struggle with building up a personal savings accounts at all, let alone putting aside enough money to afford life’s bigger expenses. Participating in a savings cohort gives you the power to afford large purchases in exchange for supporting the purchases of the people in your savings circle. 

Taking out a standard loan or going into credit card debt to afford your larger purchases usually comes with high interest rates and potential damage to your credit score. Opting for an alternative like a savings cohort could be a way to plan for your next purchase instead.

Not to mention, staying accountable for payments is often easier in a group setting. Would you be more likely to meet your savings goals if your friends or family were counting on you to do so? A savings cohort could be the perfect motivator for reaching your financial goals. 

How eMoneyPool works

If you’re ready to get started on your savings cohort journey, eMoneyPool is a great place to start. Self-described as “the world’s largest money pool marketplace,” eMoneyPool only requires three steps to begin growing your money. 

  1. Pick an established pool that has similar payment terms to your desired amount.

  2. Choose your position in the rotation.

  3. Collect your payment by completing your payments to the group. 

Benefits of using eMoneyPool include user verification, user reputation ratings and the ability to build your credit by reporting your payment history to Expedian. Keep in mind, early spots in the rotation are usually reserved for eMoneyPool veterans. 

If you’re ready to remodel your kitchen, afford the wedding of your dreams or finally take that trip to Italy, eMoneyPool could be your greatest asset in getting there. 

The Financial Gym Team