jógkör

Jógkör is a type of cooperative banking and savings group originating from Iceland. The term translates to "yoga circle," which alludes to the cyclical and communal nature of its operation. In a jógkör, a group of individuals pools their money together. Members then take turns receiving the entire accumulated sum for a predetermined period, typically a month. The order in which members receive the money is usually decided by lottery or agreement among the participants.

The primary advantage of participating in a jógkör is the ability to access a significant lump sum of money earlier than if one were to save individually. This can be particularly useful for planned expenses such as a down payment on a house, a vehicle purchase, or a significant investment. Members who receive the money later effectively contribute to the earlier members' goals through their regular contributions.

Jógkörs are based on trust and mutual agreement among members. They operate outside of traditional financial institutions, meaning there is no formal interest charged or paid. Instead, the benefit is derived from the early access to capital. The practice is rooted in a communal spirit and can be seen as a form of informal credit union or savings circle adapted to Icelandic culture. While not as widespread as formal banking, jógkörs have historically played a role in providing accessible financial solutions within certain communities.