How Saving Clubs Work FAQs

We bring people together to reach their financial goals faster. They tell us their goal, and how much they can afford each month and we’ll match them to a group of people (a Saving Club) with the same financial goal. Everyone pays in the same amount each month. Every month one person in the Club is awarded the entire pot (the Draw). This repeats every month until everyone has received a Draw.

Members who receive their Draw early in the cycle are akin to 'borrowers,' while those who receive it later are akin to 'savers'. This is because economically, their respective position resembles that of a borrower (the member draws early and repays over time) or that of a saver (the member sets money aside over time and draws later).

Important Note: Unlike Private Saving Clubs, whether a member is in the 'borrower' or 'saver' category isn’t necessarily a matter of choice, especially in our system where the order of Draws is determined randomly. It's more about the timing of member’s Draw within the cycle. The beauty of a savings club is that everyone contributes equally and eventually receives the same lump sum amount, irrespective of whether they are 'borrowers' or 'savers' in the cycle.

Saving Clubs are our way of uniting people into collaborative groups to save money more effectively and raise funds faster than they would otherwise do on their own. Here’s how it works:

• Setting a Goal & Joining: Members tell us what they’re saving for, and how much they can spare each month. We’ll match them with a Club of like-minded savers. Everyone in the Club contributes the same amount monthly.
• Monthly Draws: Each month, one member is randomly selected to receive the whole pot. This process repeats every month during the Club’s cycle until everyone has had their turn.

Research suggests that in Saving Clubs with random draw allocation, participants are three times more likely to hit their savings targets than going solo and there's a 90% chance they will do so earlier. It's partly because of the group commitment, and let's be honest, partly because it's harder to skip a contribution when one knows they might be drawn next month.

An Example: Imagine a member’s bank other than her own is offering a term deposit with a highly attractive interest rate compared to that which her own bank offers. The catch, however, is that it requires a substantial minimum deposit, say £3,000 which might be beyond the cash savings immediately available to her. If she can save £250 per month, it will take her twelve months to reach the £3,000 threshold on her own. In a 12 member-Saving Club, she is three times more likely to stick to her commitment to set aside £250 per month than if she were doing it alone and while nothing is guaranteed, there's a 90% chance she will receive the £3,000 Draw before the end of the 12-months cycle. Worst case scenario, she’s still on track as if she were saving by herself – but with the added chance of reaching her goal sooner.

While the timing and performance advantages are clear, there are other factors to consider. Please review our risk warnings here for more details.

All our Saving Clubs operate on the same fundamental principles. In each Club, at least three members are needed to start. Members can choose their contribution amount, with options ranging from as low as £25 to as high as £5,000 each month. The duration of the saving cycle is flexible, extending anywhere from 3 months to 30 months. Additionally, the selection for the monthly draw is conducted randomly to ensure fairness in the allocation process. Although the operational framework is the same, we offer two distinct options to facilitate our customers' financial journey:

Starter Clubs offer a convenient entry point for customers, enabling them to work towards financial goals that require modest capital and are achievable within a relatively short timeframe. These Clubs allow members to contribute amounts ranging from £25 to £250 monthly with draws for a maximum amount of £3,000. Starter Clubs operate over periods of 3 to 24 months. When drawn, the funds are typically disbursed within 3-5 working days.

Pioneer Clubs are designed for customers committed to accumulating substantial capital for investment purposes. Contributions start from £250 up to £5,000 a month and help customers stay disciplined and focused on their goal of building capital. The maximum aggregate amount a customer can draw from one or several clubs is £60,000. Starter Clubs operate over periods of 3 to 30 months. Funds drawn from a Pioneer Club are specifically earmarked for purchasing bonds on our investment platform.

Yes, our Saving Clubs are primarily focused on investment. Our platform is specifically designed to enable diaspora members to make investments in their home countries, with opportunities like diaspora bonds and strategic investments such as remittance bonds. These options, requiring more capital, offer unique benefits and contribute to impactful investments.

Starter Clubs (£25 - £250 per month)

Starter Clubs are the initial phase for members to start saving towards achievable financial goals with modest capital. While these goals help develop financial acumen and prepare for future investments, members are encouraged to view these savings as a foundation for larger investment ventures. Examples include building an emergency fund, debt repayment, credit score improvement, and placing funds in short-term deposits.

Pioneer Clubs (£250 per month or more)

Pioneer Clubs are for those aiming to build larger investment capital. Contributions start at £250, leading to opportunities like remittance bonds, where diaspora investors hold the principal in hard currency and their relatives receive local-currency interest. This arrangement not only yields strategic returns but also serves as an effective low-cost remittance method.

Flexibility and Community

Our approach is flexible, adapting to each member's unique financial journey. We offer bespoke Saving Club structures, provided there are sufficient members with shared goals. Our platform also fosters a community of purpose through features like forums and chat groups, encouraging knowledge sharing and mutual support.

Our Philosophy

Our platform goes beyond saving, aiming to foster a culture of investment and economic development. By channelling savings into productive investments, we help members build their wealth and contribute to the broader development goals of their native countries.

We offer Saving Clubs with circles starting from £25 a month and you can mix and match the Saving Clubs you join to suit your budget and financial goals and you can take more than one seat in the same Saving Club.

Yes, any contributions you make to a Club are considered as part of a loan. All members are bound to each other through a legally binding loan agreement, the specifics of which are detailed in the Micro Loan Agreement and the Membership Agreement. These documents outline the terms and conditions that govern your participation in the Club. For your convenience and understanding, you can access these documents here.

No. Our Saving Clubs take inspiration from the traditional ROSCA model (Rotating Savings and Credit Associations), which operates without the need for interest payments. This isn't about missing out on financial gains; it's about providing a cost-effective and efficient way for members to save together. In our Saving Clubs, members join forces to support one another's financial goals, fostering a strong community and sense of solidarity. The real economic advantage lies in reciprocity—the 'I scratch your back, you scratch mine' principle—where no interest is charged among members. This not only reinforces community ties but also results in substantial savings.

Crucially, the absence of interest eliminates potential tax on income and reduces administrative costs—benefits that we directly pass on to our members. With these savings, members are better positioned to pursue their primary aim: building capital efficiently to invest in lucrative, income-generating opportunities.

Monthly payments are made by Direct Debit so you don’t have to remember to make your payments each month. In the future, we will also explore the possibility of making payments through salary deductions (for corporate customers only).

If there's any problem or you unexpectedly can't pay, get in touch with us here and he will help you work out a catch-up plan. We're here to help.

When and how you receive your money from our Saving Clubs depends on your stated use of the funds. For goals like building an emergency fund or improving your credit score, where immediate access to funds is essential, we ensure a swift transfer to your bank account, typically within 3-5 business days once you're drawn.

In cases where your savings are earmarked for settling an existing debt, we directly pay the lender, streamlining the process of debt reduction for you. Similarly, for acquiring a financial asset, as is often the case with Pioneer Clubs, we have a tailored approach. If you have already selected an investment, we will proceed with its acquisition. If not, your funds will be securely held in escrow, awaiting your investment decision. This ensures that your savings are ready and available when the right investment opportunity arises.

Yes you continue to make your payments until the end of your Saving Club cycle.

At Fusion Bridge Capital, we apply a standard fee of 5% on the Draw in our Saving Clubs. This fee is conveniently deducted from the drawn amount, ensuring a straightforward process for members.

Additionally, we offer a different fee structure in specific scenarios such as debt refinancing. In these cases, our fee is calculated as a percentage of the money saved through the refinancing process. This approach ensures that our fees are aligned with the financial benefits realized by our members.

When it comes to trusting other members’ commitment to payments in our Saving Clubs, we have established robust measures to ensure reliability and accountability. First, we implement strong underwriting criteria to assess the creditworthiness of all members. This process is crucial in minimizing default risks.

Additionally, all members are bound by a legal agreement, which clearly defines their obligations and the enforcement rights of the platform. In the unlikely event of non-payment, we have fair and proportional but firm enforcement measures in place including referral to collection agencies and reporting to credit bureaus if necessary.

Members can be confident in our system for two key reasons:

• We underwrite a significant portion of the default risk, as any default would impact our reputation and erode our customer's trust in us. This underwriting reflects our commitment to maintaining a trustworthy platform.
• There is a clear alignment of interests among all members. The principle of reciprocity ensures that everyone undergoes the same rigorous underwriting process. This shared standard, along with our vested interest in protecting the platform's reputation, creates a community of members who are equally committed to upholding their financial responsibilities.

It’s our problem, not yours. We have financial measures in place that make sure the contributions continue for everyone else. You will not be affected by someone else dropping out of your Club. You will still receive your Draw at some time during your saving cycle. This is regardless of what any other member does, as long as you continue to make your monthly contribution.

To get started take a few minutes to complete our Application Form - we just need a few details about you, your income and expenditure. We'll then match you to the Saving Clubs that could work for you. You choose how much you want to pay per month and complete the onboarding process, which includes a short quiz to check you understand how Saving Clubs work.

It then takes 24 hours for us to process your application then we’ll email you when it’s time for you to come back to the platform and join your Saving Club.

No. We want to make Saving Clubs as accessible as possible, so have designed a "Credit Builder" status for people with lower credit scores to still be able to join. If this is you, we’ll notify you at the point of signing up, but essentially there would be a delay on when you are eligible to be drawn in your Saving Club. Don't forget that joining a Saving Club could improve your credit rating if you make your monthly payments on time, as we report your payments to the credit bureau.

This is the exciting bit! Every month on the 7th of the month it's Draw day. One member of each Saving Club is selected at random (by a random allocation algorithm) to be awarded the draw. You’ll be sent an email to check your member dashboard.

However, members who have been designated as Credit Builders will not be eligible for a random draw until such time as they have made at least 50% of their monthly contributions.

Absolutely! Joining a Saving Club with a friend is a great way to stay motivated and support each other on your financial journey. If you and your friends share the same financial goals and agree on the amount to contribute monthly, we can place all of you in the same Saving Club. This allows you to:

• Engage with each other and the rest of your Saving Club through our in-app chat feature, where you can have both group discussions and private conversations within your Saving Club.
• Celebrate together when either of you is awarded the pot, providing encouragement and motivation to all members along the way.

Should you decide on different contribution amounts, we will integrate you into separate Saving Clubs that correspond to your individual contribution levels. Despite being in different Savings Clubs, you'll still be part of the broader Fusion Bridge Capital Community. In this expansive community space, you can:

• Interact and provide support via community forums, sharing successes and advice with a wider network of members.
• Continue personal support through external communication channels like a private WhatsApp group, ensuring you and your friends can keep each other accountable and inspired, no matter the distance.

These Saving Clubs which we refer to as Private Saving Clubs are completely bespoke and among other thing, they can accommodate varying contribution sizes, saving cycles, order of draws, split draws, underwriting criteria and dispute resolutions. Contact us here to discuss your requirements.

If a member needs to exit a Saving Club, either due to changing circumstances or a unilateral decision, it's important to be aware of the potential impacts. Early departure can affect both the member and the remaining Club members. Key considerations include:

• Credit Reporting: On-time contributions, which positively impact credit scores, will cease to be reported once a member leaves, potentially affecting their credit rating.
• Outstanding Contributions: Members who depart may need to negotiate a payment plan to settle any remaining contributions.
• Credit Implications: Unsettled contributions could lead to negative credit reporting or collection enforcement.
• Restrictions on Service: Departing members might face limitations on using our services, including restrictions on joining future Saving Clubs.
• Community Impact: Other members, especially hosts of clubs the member is part of, will be notified, which could influence the member’s standing within the Fusion Bridge community.

Members should carefully weigh these factors before deciding to leave. However, we do offer flexibility:

• No Draw Awarded: If a member hasn't received a draw, they can exit with any contributions (minus fees) refunded at the end of their saving cycle.
• Post-Draw Award: If the draw money remains in their e-wallet, they can leave, receiving any contributions (minus fees) at the cycle’s end.
• Post-Draw Use: Members who've used their draw money are contractually obligated to continue contributions. Early settlement is possible, including through liquidation or redemption of investments made with the draw, though they may need additional means to cover any remaining obligations.

We are always available to discuss your personal situation and find solutions if you need to drop out. Our goal is to assist and support you through any changes.

No problem. We understand that life changes. Have a look at the FAQ regarding drop outs above.

We believe there are a number of benefits to joining a Saving Club compared to joining an informal lending circle.

Ease and Efficiency

• Automated Management: We handle the club's organization and administration, including managing payments and following up on late contributions.
• Automated Payments and Reminders: Ensure consistent contributions with minimal effort from members.
• Diverse Contribution Options: Because of the network effects of organising these circles at scale we can offer a range of options from £25 - £5,000 a month so it's easier for us to match members to people with the same financial goals.

Security and Trust:

• Secure Fund Handling: Funds are securely held in a client money account.
• Legal Assurance: Members are bound by legally enforceable contracts, ensuring commitment and trust.
• Strong Underwriting and Risk Management: Rigorous underwriting criteria to ensure affordability and minimize default risks, along with underwriting the risk of dropouts and defaults.
• Legal & Financial Regulations: We operate under a UK-based regulatory framework that ensures security and legal backing, offering protection against fraud or mismanagement.
• Enhanced Security Protocols: Robust security measures protect members' financial data and transactions

Financial Benefits and Support:

• Credit Building: Regular payments are reported to credit bureaus, aiding in improving credit ratings.
• Financial Guidance: Access to expert advice on investments to help achieve investment goals.
• Transparency and Record Keeping: Clear tracking and record-keeping of all transactions and progress.

Community and Connectivity:

• Personal Connection: A chat function allows for maintaining personal touch and community bonding.
• Broad Community Access: Not limited by social circles or geographic location, available to all UK residents/accounts.
• Integration of Private Saving Clubs: Facilitating private clubs to transition their setup online for enhanced security and structure.

Convenience and Flexibility:

• Flexible Payment Methods: A variety of payment and payout options to cater to member preferences.
• Responsive to Personal Circumstances: Built-in flexibility to address changes in members' circumstances, including options for those who haven't been awarded a draw or those who wish to leave the club.

All members' funds are securely managed and held by MangoPay S.A. (“MangoPay”), the chosen client money holder and payment service provider. MangoPay is an established e-money institution, regulated under the supervision of the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg and operates in compliance with the e-money directive 2009/110/EC of the European Union. This ensures that the funds, deposited into E-wallet accounts by our members, are maintained in a Client Money Account separate from our own finances. In the unlikely event of our insolvency of that of MangoPay, these funds, classified as Client Money, are protected and will not be considered as assets of either company. The E-Wallet Account is where each member’s contributions are stored, and where the Draw is credited post-selection, thereby ensuring both security and compliance with CSSF’s stringent rules and regulations.

No, the funds in our Saving Clubs are not covered by the Government's Financial Services Compensation Scheme (FSCS). Since our platform operates within the peer-to-peer (P2P) regulatory framework, the protections typically offered by FSCS for traditional banking services do not extend to our Saving Clubs

The legal agreements comprise the Membership Agreement, the Micro-Loan Agreements and the Circle Agreements. Get in touch with us here

We get it, it all sounds too good to be true, doesn't it?! That’s exactly what our first members thought before they experienced this service, the excitement of Draw Day and received their funds. Now over 2,000 members have trusted this platform to help them achieve their financial goals. But don’t just take our word for it, check out their independent reviews on Trustpilot – here