Sacco Deposits
Sacco deposits refer to the savings that members contribute to their Back Office Services Activity (BOSA) account. These deposits serve as a guarantee for loans and are refundable upon the withdrawal of membership. Members earn interest on these deposits annually. Key features of sacco deposits include their nature as savings, their withdrawable status, and their utility in accessing loans. Saccos offer Front Office Services Activity (FOSA) accounts for more immediate banking needs.
Share Capital
Share capital represents the amount of money a member invests to purchase shares within the Sacco. This investment is typically a one-time contribution that confers ownership rights within the organization. Share capital plays a crucial role in enhancing the stability and growth of the Sacco. Importantly, it is generally not withdrawable, but it can be transferred to other members. Members receive dividends annually based on their share capital contributions.
