Bank account or any other mode of savings for a group of friends

logistopath

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We are a group of around 12 friends with their respective families who would like to meet up for vacations. We would like to start saving money each month and pool it in a common account, and then spend from this for our vacations. How do we go about doing this, without creating IT problems for any person? Let us say we want to contribute Rs.1000 per head per month. This itself would come to Rs.12000 each month. So using any one of our's personal bank accounts might be problematic. What is the way out?

Has anyone else done something like this? Any suggestions?
 

Jambumali

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Open individual RDs and pool the maturity proceeds. Any other way of sending cash to each other becomes cumbersome.
 
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puns

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We are a group of around 12 friends with their respective families who would like to meet up for vacations. We would like to start saving money each month and pool it in a common account, and then spend from this for our vacations. How do we go about doing this, without creating IT problems for any person? Let us say we want to contribute Rs.1000 per head per month. This itself would come to Rs.12000 each month. So using any one of our's personal bank accounts might be problematic. What is the way out?

Has anyone else done something like this? Any suggestions?
In the US, Paypal has Money Pools for this sort of thing but I dont think it exists for India.
Its a big headache if you ask me to have a bank account and everyone pool in and taxation issues on top of that.

Best way would be a travel agent to handle everything and collect payments accordingly from everyone. Everyone saves in their own Bank accounts or open a specific account for this but on their own.
 

blr_p

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Why can't you do it the old fashioned way. Every one pays their way. No management, no bank account. All very simple.

The biggest problem with your setup is what if people don't pay up. This adds extra tracking headaches.
 
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Party Monger

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What happens when the guy running the common account gets up to mischief. Save in your own account. Pool later. Or transfer to some travel agent directly.
 
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ssslayer

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History and common sense tells us that trust no one when money is involved.
Best is to ask each family to individually act responsibly and save money (in recurring deposit, SIP, etc) based on their own means and aspirations. And if everything runs good then we shall meet for so and so holidays.
 

logistopath

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Thanks for all the replies. I guess there is no practical solution for this.

In the US, Paypal has Money Pools for this sort of thing but I don't think it exists for India.
Yeah. It's not available in India. Which is why I was searching for something of this sort.
Best is to ask each family to individually act responsibly and save money (in recurring deposit, SIP, etc) based on their own means and aspirations. And if everything runs good then we shall meet for so and so holidays.
That seems to be the only option. Sadly that also means at least 50% of the group won't make it.
What happens when the guy running the common account gets up to mischief.
I know there are concerns about mismanagement and non payment etc. All that comes only if there is an option to pool our money, which sadly doesn't seem to exist as of now.
Open individual RDs and pool the maturity proceeds.
This might be possible. Thank you.
 

blr_p

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The idea is interesting, you are in effect setting up a cooperative and then using it t bargain lower prices for all. Have seen this on the board earlier, its called group buy.
Post automatically merged:

What happens when the guy running the common account gets up to mischief.
Most common kind i see is short term loans on interest. Course if loans don't get repaid then the whole stash is at risk.
Post automatically merged:

That seems to be the only option. Sadly that also means at least 50% of the group won't make it.
That might just be enough. In my building if any improvements are sought the rule is do not start the work until 50% of the cost is collected upfront.

There will be extra work to recover the balance.

You will need to designate a secretary to manage and produce reports on a periodic basis.

Have one account and people just pay into it.
 
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