Chama or merry-go-round: which fits your group?
Both pool money with people you trust — but they do very different things with it. Here's how to choose.
When a group decides to start saving together, the first question is usually: how should we do it? Two models dominate, and the right choice depends on what your group actually wants.
The chama: save and borrow together
In a chama (also called table banking), members contribute regularly into a shared pool. That pool then funds loans to members, with interest. The interest grows the pool, and at the end of the cycle the group shares out — by default, each member gets their contributions back plus a share of the profit proportional to what they put in.
Choose a chama if your group wants to save and have access to credit — a place to grow money and borrow from when life happens.
The merry-go-round: a disciplined lump sum
In a merry-go-round (a ROSCA), every member contributes the same fixed amount each cycle, and the entire pot goes to one member that cycle. The payout rotates through the group until everyone has received once, then the round repeats.
There’s no lending and no interest — it’s a simple, powerful way to save toward a lump sum and make sure everyone gets a turn.
How to decide
- Want to borrow as well as save? Chama.
- Want a guaranteed lump sum on a schedule? Merry-go-round.
- Not sure yet? Start as a social group and upgrade when you’re ready.
Whichever you pick, your group sets the rules and the ledger keeps everyone honest. See the full comparison.