Your money is protected.

A savings club is a group purchasing mechanism. Members contribute to a common fund and take turns receiving purchasing power to acquire assets. There is no expectation of financial profit. You receive the value of the asset you are saving for, not a financial return on your investment. A security, by contrast, is an investment where you put money in with the expectation that it will generate profit, typically through the efforts of others (the promoter, fund manager, or company). Securities are regulated by the SEC under the Securities Act of 1933.

The U.S. Supreme Court established a test in SEC v. W.J. Howey Co. (1946) that is still used today. Under the Howey Test, a transaction is a security if it involves: (1) an investment of money, (2) in a common enterprise, (3) with a reasonable expectation of profits, (4) derived primarily from the efforts of others. If all four elements are present, the transaction is likely a security and falls under SEC regulation. If someone tells you that you will make more money than you put in, or that the program will generate returns for you, those are strong indicators that the product may be a security, not a savings club.

No. The SEC regulates securities. A properly structured savings club, where members contribute to a common fund for the purpose of acquiring assets (not generating profit), does not meet the definition of a security under the Howey Test. There is no expectation of profit, and the purpose is asset acquisition, not investment returns. However, if a program that calls itself a 'savings club' promises financial returns or profit to its members, it may in fact be operating as a security, regardless of what it calls itself. The SEC looks at the economic substance of a transaction, not its label.

Under SEC rules, an accredited investor is an individual with annual income exceeding $200,000 (or $300,000 jointly with a spouse) for the last two years, or a net worth exceeding $1 million (excluding primary residence), or certain professional certifications. The accredited investor designation exists because the SEC assumes that individuals meeting these thresholds have the financial sophistication and resources to bear the risk of loss associated with securities investments. In other words, if you are investing in a security, the regulatory framework assumes you can afford to lose that money.

Savings.Club operates as a savings club, not a security. Your contributions go into a legally separate, irrevocable trust managed by Jackson Hole Trust Company, an independent fiduciary. The trust's bank account is held at US Bank, which is FDIC-insured. Savings.Club cannot access, redirect, or use your money for any purpose other than member benefit. An independent Member Governing Board provides additional oversight. These protections exist because the system is designed around the premise that your money matters and that losing it would cause real harm. Securities, by contrast, carry the inherent assumption that the investor understands and accepts the risk of total loss.

Exercise extreme caution. A legitimate savings club does not promise financial returns or profits. Its purpose is to help members acquire assets through collective saving. If someone is telling you that you will receive more money than you contribute, or that the program will generate investment returns, that is not a savings club. That is likely a security, and it should be evaluated under a completely different risk framework. Ask whether the program is registered with the SEC, whether you need to be an accredited investor, and what happens if the program fails. If the answers are unclear, consult a financial advisor or attorney before participating.