Here’s an example of a savings group with 3 members using the auction method; they meet once a week and their weekly contribution is 10 each. The pooled amount totals 30 and whoever wants to take the lump sum must offer a bid (a price). The one who offers the most, will take the lump sum minus the amount offered.

In the following example, the lump sum was taken by Kofi, who offered the most (5) for it. This means that he is willing to take a lump-sum amount of 25 (30 -5 = 25). The price 5 is kept as an income earned for the group, and is only shared at the end of the cycle, when all members have received the lump sum once. At the end of the second meeting, Amita pays 4 to get the lump sum.

She takes 26 (30 -4 = 26) as her lump sum. Since Noha is last, at the last meeting she receives the full 30. At the end of the cycle, members equally share the money collected from the lump sum sale. Since the group has accumulated a total of 9 from the lump sum sales, each member receives 3 at the end of the cycle. The group can then start a new cycle.