What is Sanlam’s ADDaBIT?
‘Social savings’ have become a commonly used term in the online finance space with the likes of concepts like Crowdfunding through sites like backabuddy and now Sanlam’s ADDaBIT. Here, people are given the opportunity to contribute, as they are able, towards various funds. Moneybags journalist Danielle Van Wyk delves into ADDaBIT and how it can benefit both you and your children’s financial future.
What is ADDaBIT?
The basic principle is that users are able to choose what they want to save towards for their children, be it their education or a holiday trip or a gift etc. They then set up an ADDaBIT fund and through it ask friends and family to contribute whenever they are able to. Important to note is that there are no penalties, monthly fees, minimum payments, and users earn a competitive rate of return on their investment.
“There is a savings crisis in South Africa and part of the problem is the misconception that one needs a lot of money to invest. By teaming up with ADDaBIT, we’ve made it possible to save any amount, from as little as R1, to help people achieve their own goals and contribute to that of others. And they can do this by using their everyday banking facilities,” states Carl Roothman, chief executive of Retail at Sanlam Investments.
According to Sanlam, ADDaBIT is the brainchild of Michael Griffin, who was inspired when hearing Steve Jobs talk about how he looked at yet another pile of neglected toys and thinking of the money wasted on the purchase of these toys versus what that money could have done for his children in the future.
“Michael is highly experienced in creating fit-for-market products and services. A few of his previous roles include CEO for Porsche Design Retail Stores; MD of Ashbury Satcom; and co-founder of Wealth Creators, a free entrepreneurial education program for schools, to mention a few,” Sanlam explains.
“I want to enable smart, simple, social saving for brighter futures around the world,” says Griffin. “It’s time to challenge the way people think about gifting and saving and encourage the philosophy of some for now and some for later.” Griffin explains, “There is great value in Granny being able to allocate a portion of her birthday budget for each of her grandchildren to a product that they desperately want now and an experience or a need to come in many years from now.”
What can you use ADDaBIT for?
According to ADDaBIT, users most commonly make use of the platform for:
- Special occasions
Everyone can contribute to the perfect wedding, baby shower or birthdays gift
From just R1 at a time you can invest in your or a loved one’s future with no minimum monthly contributions or lump sum payments
Yield returns on money raised while you source project funding
- Charitable causes
Easily and transparently collect donations and earn sustainable returns
Collectively save for the things you want to do
- Children’s bank accounts
Easy for the whole family to contribute and no banking fees to dilute your children’s savings
Setting up a fund
Users will find that setting up a fund is as simple as deciding on your fund name, adding a description, deciding on a target amount and date, adding a beneficiary and deciding whether you want to make the fund private or whether you want to make it a project.
Making your fund private would mean that you could select who you want to be able to contribute to the fund by sending them a private fund code, while a project means that contributions can come from any member of the public.
Now, if the above doesn’t have you convinced as yet, the setting up of the fund is free.
“There is also no termination date for any fund – it remains active until you redeem the fund,” adds Sanlam.
Griffin says, ‘ADDaBIT is proud to partner with a credible, strong and proudly South African brand such as Sanlam and make their investment management expertise available to future investors.’ Those interested in social saving can visit the site for more.
Other social savings sites
If you are intrigued by the social savings concept and culture, here are other similar sites for you to check out: