Savings

Features: Minimum book balance 2,000 Withdrawals at any time Interest rate is at 5% per annum

The main purpose of fixed deposit account is to enable the individuals to earn a higher rate of interest on their surplus funds (extra money). The amount can be deposited only once.

Features: The main purpose of fixed deposit account is to enable the individuals to earn a higher rate of interest on their surplus funds (extra money). The amount can be deposited only once. For further such deposits, separate accounts need to be opened. The depositor is given a fixed deposit receipt which depositor has to produce at the time of maturity. The deposit can be renewed for a further period. As per the Traditional scheme, the principal and interest on the FD account is credited to the Savings account specified on maturity. For the Reinvestment the interest is compounded to the principal amount on maturity. Duration of Fixed Deposit Fixed deposit can be opened for a minimum period of three months, six months and maximum of nine months. Eligibility for Fixed Deposit All SACCO members are eligible to open a fixed deposit account. Interest rates: 9% per annum (1 Month) 10% per annum (2 Months) 11% per annum (3 Months) Minimum book balance is MK 10,000

Redeemable Shares | Non-Redeemable Shares A unit of ownership that represents an equal proportion of the company’s capital. It entitles its holder (the shareholder) to claim on the company’s surplus (dividend) and an equal obligation for the company’s debts and losses.

Redeemable Shares | Non-Redeemable Shares A unit of ownership that represents an equal proportion of the company’s capital. It entitles its holder (the shareholder) to claim on the company’s surplus (dividend) and an equal obligation for the company’s debts and losses. Types of shares 1. Redeemable shares – Funds that a member commits to save directly from their salary. The minimum payroll shares deduction is MK8,000 which are collected 3 months after a member withdraws membership from the Sacco. Redeemable share entitles the shareholder to share in the earnings of the company as and when they occur. 2. Non-redeemable shares – This is a requirement by the government through the RBM that each member contribute minimum of MK20,000 shares upon joining the Sacco. It is a capital fund from every member to the Sacco. It is collected once off during the members lifetime. Benefits An investment platform for members as they yield dividends at the end of the year based on company’s share capital. Voting rights at the annual general meetings