Why joining Sacco is a good investment decision

Savings and Credit Co-operative Societies (Saccos) are powerful savings vehicles. If you are looking for your financial independence, I strongly recommend joining a Sacco today.

Forget all the hearsays you have heard; Saccos are really transforming lives. I have banked with a Sacco for over ten years, and I wish I had joined earlier.

Saccos have open membership, and no one can claim to be left out by virtue of not being employed. By being a member of a Sacco, you own it and participate in deciding its future. You are not just a customer.

I can testify that Saccos are the foremost and reliable partner in growing a business as a beneficiary. In addition to saving for a rainy day, they offer the most convenient and cheap loan to grow your business. As long as you are an active member with the required savings and guarantors or security, you are assured of a fast loan compared to other lenders.

This makes Sacco the best place to be if you are own or are preparing to start a business in the future.

It does not matter what you earn every month. Most of us who thought we could not save, invest or help others because our earnings were insufficient have learned that it is not a matter of how much we earn. It is a matter of what we value and prioritize in life.

Whether you are an individual in employment, self-employment, or owning a business, your prosperity and stability depend solely on your ability to save.

Money will never be enough to make saving effortless. Whether you are earning little, servicing the loan, growing a business on a shoestring budget, or undertaking whatever project, saving is possible but requires sacrifice. You don’t have to wait for a disaster to teach you that you can still live with less than what you thought was too little.

3 types of Sacco Savings

Saccos provide members with various ways of savings: you can have your money saved in three different accounts. Firstly are the withdrawable deposits (savings), which are withdrawable by a member-depositor at any time, such as through teller withdrawal transactions, mobile money withdrawals, ATM withdrawal platforms, or the internet, among others. These deposits (savings) are transacted through the member’s Savings Account (sometimes referred to as FOSA Account) maintained by DT-Saccos. Another characteristic of these deposits is that the member of the Sacco Society does not lose membership by withdrawing the same, and the member may withdraw a portion or all of these deposits at any time and will and still remain a member. 

Secondly are the fixed-term deposit– which are deposits for a fixed period depending on the contractual agreement between the Sacco and the member. The accessibility of fixed-term deposits is governed by the contractual agreement between the Sacco and the depositors. Likewise, their withdrawal does not lead to or result in the loss of membership to the Sacco. 

Thirdly, the non-withdraw-able deposits (savings) are not withdrawable or payable to a member, except upon resignation from membership of the Sacco Society. A member may use the non-withdraw-able deposit liabilities as collateral for any credit or loan facility that may be issued or granted to a member and is maintained in the non-withdrawable deposits account established for the member under Reg. 22 of the Regulations 2010.

(Stanely Kionyo)