Daret in Morocco: how the rotating savings circle works, pros and pitfalls

How a daret works

A group (family, colleagues, neighbours) agrees on a monthly contribution and an order of turns. Every month, everyone pays their contribution and one person receives the full amount.

Example: 10 members at 1,000 DH a month. Each month, the pot is 10,000 DH. The first person on the list receives it in the first month, the last one in the tenth month. In total, everyone pays 10,000 DH and receives 10,000 DH.

Advantages

• Savings discipline: you pay your contribution like a bill.
• A large sum at once, useful for Eid, the back-to-school season, a wedding or a down payment.
• No fees and no interest: it suits people who avoid interest-bearing loans.

Drawbacks and risks

• No return: 10,000 DH paid in means 10,000 DH received.
• Risk of default: a member who has already received their turn may stop paying.
• Long commitment: you must be able to pay every month until the end, even after you have received the pot.

Choosing your turn

Early turns work like an "interest-free loan": useful if you have an expense coming up soon (Eid, back to school). Late turns work like forced savings. Choose according to your needs, and check that the contribution fits in your monthly budget.

Tracking your daret without mistakes

Record the contribution as a monthly outgoing (it reduces the money you have available), and the pot as income in the month you receive it. Keep the schedule of turns and tick off each month paid: if there is any doubt in the group, you have your own record.

Frequently asked questions