SAVINGS POLICY
Contents
1.0 ORDINARY SAVINGS ........................................................................................................................ 2
2.0 HOLIDAY SAVINGS ........................................................................................................................... 4
3.0 LIKUSASA SAVINGS .......................................................................................................................... 5
4.0 SCHOOL SAVINGS ........................................................................................................................... 6
5.0 ETSALA INVESTMENT ......................................................................................................................... 7
6.0 MAXI-SAVE INVESTMENT ................................................................................................................. 9
7.0 YOUTH SAVINGS ............................................................................................................................. 10
8.0 AMENDMENT ................................................................................................................................... 12
9.0 ADOPTION OF RULES ...................................................................................................................... 12
1.0 ORDINARY SAVINGS
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SAVINGS POLICY
1.1 Objectives and Purpose
1.1.1 To encourage the spirit of thrift and saving money for
the future, whilst spending it wisely.
1.1.2 To create a financial base for enhancement of the
socio-economic status of individual members,
through financing members for provident and
productive loans.
1.2 Rules and Policy Guidelines.
1.2.1 The minimum amount of savings will be E290.00 per
month and E100.00 per month for special members.
However, members are encouraged to save more,
depending on their specific needs and budget
appetite.
1.2.2 The Board shall reserve the right to review and
increase the minimum amount on annual basis. The
current annual increase rate is 10%, this clause shall
exclude special members as defined by their policy.
1.2.3 It is a compulsory kind of savings for every member
of the SACCO and it is used to determine the
borrowing power when it comes to the long term
loan and can be used as surety for project loans.
1.2.4 The interest’s rate will be 8.0% per annum, subject to
review by Board on annual basis.
1.2.5 Savings are deposited progressively for as long as
one is still a member of the SACCO and the savings
are not withdrawable.
1.2.6 No member shall be allowed to neither withdraw nor
off set against any loan using all or part of the
ordinary savings. Provided that any member who
has accumulated more than E100, 000.00 in his/her
account and does not have an ongoing long term
loan may be allowed to withdraw or access the
amount above the E100, 000.00 limit. In the case of
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special members and pensioners, the limit shall be
E10, 000.00.
1.2.7 Special members and Pensioners are allowed to
withdraw 50% of the accumulated savings since
their borrowing appetite and capacity to repay the
loan may not be premising. This clause will apply
provided the member does not have any
outstanding loans with the SACCO.
1.2.8 A member must have completed at least three (3)
months of membership and saving regularly with the
SACCO before they can be allowed to obtain a
loan against the savings. The board reserves the right
to waive or review this period as and when the need
arises.
1.2.9 A member who deposits a large cash sum for
purposes of securing a loan shall be required to
observe three (3) months period before making a
loan against such deposit, however the board
reserves the right to waive or review this period as
the need arises.
1.2.10 Savings are used as part of the loans security and as
such in the event of loan defaulting, the SACCO
shall utilize the saving to pay off the loan balance
after a period of three (3) months of no loan
payment.
1.2.11 A member must continue saving with the Society
while repaying the loan.
1.2.12 Any member who resigns and re-join shall be
subjected to the three (3) months waiting period
before obtaining loans.
2.0 HOLIDAY SAVINGS
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2.1 Objectives and Purpose
2.1.1 To encourage the spirit of saving money and
spending it wisely.
2.1.2 To improve the SACCO’s financial base for further
enhancement of the socio-economic status of
individual members.
2.2 Rules and Policy Guidelines.
2.2.1 The minimum for holiday savings will be E100.00 per
month but members are encouraged to save more,
depending on their specific needs.
2.2.2 The interest’s rate will be 8% per annum.
2.2.3 Holiday Savings will be deposited progressively
throughout the year and may also be deposited as
a lump sum.
2.2.4 Only two withdrawals are permissible after a period
of six months. However, a member who withdraw
less than 50% of accumulated savings shall be
allowed to make another withdrawal.
2.2.5 Any member who withdraws their investment before
maturity will forfeit the accrued interest.
2.2.6 Savings withdrawal is subject to maintaining a
minimum account balance of E100.00.
2.2.7 All members are eligible to save for holiday savings.
3.0 LIKUSASA SAVINGS
3.1 Objectives and Purpose
3.1.1 To encourage the spirit of saving money and
spending it wisely.
3.1.2 To improve the SACCO’s financial base for further
enhancement of the socio-economic status of
individual members.
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3.2 Rules and Policy Guidelines
3.2.1 The maturity period for this savings portfolio shall be
invested for 3 years.
3.2.2 The minimum for monthly savings will be E 100.00, but
members are encouraged to save more, depending
on their specific needs.
3.2.3 The interest’s rate will be 8% per annum.
3.2.4 The depositor will have the option to withdraw
interest or re-invest it.
3.2.5 No withdrawal will be accepted before the maturity
date of the fixed deposit.
3.2.6 Any member who withdraws their investment before
maturity will forfeit the accrued interest.
3.2.7 Savings withdrawal are subject to maintaining a
minimum account balance of E100.00.
3.2.8 All members are eligible to save for Likusasa savings.
4.0 SCHOOL SAVINGS
4.1 Objectives and purpose:
4.1.1 To encourage the habit of saving and spending
money wisely among members.
4.1.2 As such the fund is aimed to improve the SACCO’s
financial base for further enhancement of the socio-
economic status of individual members.
4.1.3 To provide a savings portfolio against which
members would access school loans.
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4.2 Rules and Policy Guidelines:
4.2.1 The minimum for School savings will be E200.00 per
month but members should consider their specific
needs.
4.2.2 The interest’s rate will be 8% per annum.
4.2.3 School Savings will be deposited progressively
throughout the year and may also be deposited in
lump sum.
4.2.4 School Savings are generally a withdrawable facility
but members with existing school loan are not
allowed to make any withdrawal.
4.2.5 In case of withdrawals, only two withdrawals are
permissible after a period of six months. However, a
member who withdraw less than 50% of
accumulated savings shall be allowed to make
another withdrawal.
4.2.6 Members with delinquent tendencies may be
refused school loans but may opt to withdraw
available savings.
4.2.7 All members shall qualify to save for school saving.
4.2.8 No member shall obtain school loan if they do not
save for school Savings.
4.2.9 School loan limit shall be E20, 000.00 subject to the
school loan policy guidelines.
4.2.10 Savings are used as part of the loans security and as
such in the event of loan defaulting, the SACCO
shall utilize the saving to pay off the loan balance
after a period of six (6) months of no loan payment.
4.2.11 Any member who withdraws the investment before
maturity will forfeit their accrued interest.
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4.2.12 Savings withdrawal is subject to maintaining a
minimum account balance of E200.00.
5.0 ETSALA INVESTMENT
5.1 Objectives and purpose
5.1.1 The objective of this policy is to provide a special
long term investment opportunity for members that
can be accessible on retirement or after a minimum
period of 60 months for members who may be
below the age of 45 years.
5.1.2 As such the fund is aimed to improve the SACCO’s
financial base for further enhancement of the socio-
economic status of individual members.
5.2 Rules and Policy Guidelines
5.2.1 This portfolio deals with monthly deposits that can
only be withdrawn on retirement and or only after a
period of not less than 60 months.
5.2.2 The minimum for monthly savings will be E100.00;
however members are encouraged to save more
depending on their specific needs. Cash lump-sum
deposits are also allowed and they are subject to
these rules and policy guidelines.
5.2.3 The interest’s rate will be 10% per annum.
5.2.4 Interest is re-invested and withdrawn only at maturity
of the investment.
5.2.5 No withdrawal will be accepted before the maturity
date of the investment. However, the Board may
allow withdrawal in the event that the member dies,
retires from employment or terminate membership
with SACCO.
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5.2.6 Any member who withdraws his/her investment
before maturity will forfeit his/her accrued interest.
5.2.7 Whereas all members are eligible to save for the
Etsala Investment Fund, participation in the fund
shall become compulsory to members that are
above the age of 45 years.
5.2.8 Savings withdrawal are subject to maintaining a
minimum account balance of E100.00.
5.3 Maturity
The investment is redeemable on retirement, provided that
members who are below the age of 45 years can access their
investment after a period of five (5) years.
5.4 Withdrawal Procedure
5.4.1 Every withdrawal application shall be done on a
prescribed application form.
5.4.2 Any member who wish to make a withdrawal shall
give notice of seven (7) working days within which
the SACCO will process and pay the claim.
6.0 MAXI-SAVE INVESTMENT
6.1 Objectives and purpose
6.1.1 Long term investment that can be made through
monthly deposits, cash lump sums and 30% interest
re-investment from ordinary savings.
6.1.2 The aim is to create a stable long term investment
opportunity for members and improve the capital
base of the SACCO.
6.2 Rules and Policy Guidelines
6.2.1 This portfolio deals with long term and perpetual
investment with minimum term of 60 months. This can
be made through monthly deposits, cash lump sums
and 30% ordinary savings interest re-investment.
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6.2.2 The minimum for monthly deposits will be E50.00;
however members are encouraged to save more
depending on their specific needs. Lump cash
deposits are also allowed.
6.2.3 The interest’s rate will be 9.5% per annum.
6.2.4 Interest shall be paid to members at the end of the
financial year.
6.2.5 No withdrawal will be accepted before the maturity
date of the investment. However, the Board may
allow withdrawal in the event that the member dies,
retires from employment or terminate membership
with SACCO.
6.2.6 Any member who withdraws their investment before
maturity will forfeit the accrued interest.
6.3 Maturity
A partial withdrawal of not more than 50% at the end of the
60 months period; provided member has no outstanding
project loan. Any other subsequent withdrawal is subject 5
years interval.
6.4 Withdrawal Procedure
6.4.1 Every withdrawal application shall be done on a
prescribed application form.
6.4.2 Any member who wish to make a withdrawal shall
give notice of seven (7) working days within which
the SACCO will process and pay the claim.
7.0 YOUTH SAVINGS
7.1 Objectives and Purpose
7.1.1 Product seeks to inculcate savings culture at the
early stages of members’ children. This could be in
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form of long terms savings, where the child can
access money at a certain age, say 18 or 21 years.
Secondly, children shall be encouraged to
individually make withdrawable savings and be able
to withdraw at agreed periods of six (6) to twelve
(12) months.
7.1.2 Long term assets building, instill good financial habits
to the youth and provides financial base for the
SACCO to capitalize its business.
7.1.3 Create future membership base and long term
membership growth.
7.2 Rules and Policy Guidelines
7.2.1 This portfolio deals with both long term and short
term youth savings, that be made through monthly
deposits and cash lump sums.
7.2.2 The minimum for monthly deposits will be E50.00
which is subject to review from time to time by the
management committee. However members are
encouraged to save more depending on the
specific needs for their children, cash lump-sum
deposits are also allowed.
7.2.3 The interest’s rate for the long term savings is 9.0%
per annum; and the withdrawable savings shall earn
a market related rate as shall be decided by the
Board from time to time.
7.2.4 Interest shall be paid on demand together with the
principal withdrawal.
7.2.5 No withdrawal will be accepted before the maturity
date of the investment. However, in the event of
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death of the principal member, the Board shall
decide on who shall take over the investment as a
guardian in case of minors.
7.2.6 Any member who withdraws the investment before
maturity will forfeit accrued interest.
7.2.7 Savings withdrawal are subject to maintaining a
minimum account balance of E50.00.
7.2.8 Joining fee of E10.00 per child shall be paid in the
case of short term withdrawable savings but no child
shall be expected to be shareholders or full
members until they reach the age of 18 years as
required by the Co-operative Societies Act of 2003.
7.3 Maturity
The investment is redeemable upon attainment of the period
specified by the parent or guardian; provided that in the case
of the short term withdrawable savings it shall be after six (6)
months.
7.4 Withdrawal Procedure
7.4.1 Every withdrawal application shall be done on a
prescribed application form, signed by child and
countersigned by the parent. Provided that under
no circumstances the child be allowed to sign
without the knowledge of the parent or guardian.
The parent may sign without the knowledge of the
child in the case of the long term investment.
7.4.2 Any member who wish to make a withdrawal shall
give notice of seven (7) working days within which
the SACCO to process and pay the claim.
8.0 AMENDMENTS
The Board of Directors shall review this Policy from time to time, but
not less than once a year.
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9.0 ADOPTION OF RULES.
9.1 It is the consensus of the Management Committee of the
Society that these rules as presented and modified from time
to time shall form the written Savings Policy of Saphumula
Savings & Credit Co-operative (LTD), and shall be strictly
followed by both officers and members of the Society.
9.2 So being it is decided that these rules shall go into effect on
the 05th May 2017 at Saphumula Savings & Credit Co-
operative Society Limited.
SIGNED ON BEHALF OF SAPHUMULA SAVINGS AND CREDIT CO-
OPERATIVE SOCIETY LIMITED MANAGEMENT COMMITTEE:
CHAIRMAN: ……………………………………. DATE:……………………………
SECRETARY:……………………………………… DATE:…………………………..
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