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The Tontine Coffee-House (2018)

(tontinecoffeehouse.com)
48 points geox | 1 comments | 21 Apr 25 14:10 UTC | HN request time: 0s | source
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GlassOwAter ◴[21 Apr 25 15:01 UTC] No.43752748[source]▶
Interesting read. I was only familiar with a bastardization that goes by the same name. An ex is from Liberia and while her mom now lives in the states she still sends money to contribute to a tontine.

They pool their money together and then rotate who it all goes to every month or some pet period.

Sounds like a scam run on the financially illiterate.

https://www.modernghana.com/news/772009/tontine-microcredit-...

replies(3): >>43753128 #>>43753285 #>>43754171 #
1. mapt ◴[21 Apr 25 15:47 UTC] No.43753285[source]▶
These are two very different systems. It's interesting that they ended up sharing a name in different locales.

Usually "Tontine" is used for a retirement plan that people pay into, which distributes the dividends evenly among the surviving cohort of investors; The last survivor gets the whole pot of investment. They fell into disrepute in small part for having salacious incentives to murder each other as the number of survivors drops, but mostly for being in competition with life insurance, pension, mutual funds, and later tax-incentive-investment-account models that ended up being more favored by governments & finance.

What you're describing is what I know as a 'tanda'.

https://en.wikipedia.org/wiki/Rotating_savings_and_credit_as...

https://en.wikipedia.org/wiki/Tanda_(informal_loan_club)