Saving is a necessary financial discipline that prepares us for the uncertainty that comes with the future days, it also helps one achieve a certain set goal (buying land, paying fees, paying a mortgage, etc.) and also provides a sense of financial security. It is important to instil a culture of saving in the younger generation because they are the most energetic and are a representation of a nation.  A lot of saving platforms have come up over the past years (banks, Chamas, and money markets), however, Saccos still remain outstanding because of their convenience and flexibility.

A SACCO (Saving and Credit Cooperation Organization) is a platform formed by people with similar interests who come together to form a credit union.  SACCOS is becoming increasingly popular at this time because members are able to save money, take loans and buy shares. The beauty is that once you start saving in a SACCO you cannot access this money anytime but can only access it through taking a loan or terminating your membership. Another plus is that one does not incur any amount of money for saving in SACCOS.

Some of the benefits that come with being a member of a SACCO are:

  1. Emergency loans.
    When a SACCO member faces an emergency, they can apply for a loan which will be processed within twenty-four hours or depending on the borrower’s urgency. The interest rate for every grunted loan is low compared to banks which makes SACCOs very popular. It is also important to note since the loan is given within a short time, the payment duration is also limited.
  2. Instil a saving culture.
    SACCOs create a saving culture where members are needed to make a stipulated monthly contribution. The contribution must be made regardless of any financial crisis one might be facing. This helps to ensure a regular saving pattern and enhances a sense of financial security.
  3. Limited liability.
    This is a condition whereby shareholders are legally responsible for the debts of a company only to the extent of the nominal value of their shares.  Sacco members can be at ease because their liability is limited to their savings. This means that if the Sacco goes bankrupt the members’ personal assets remain secure.
  4. Investment opportunities.
    All Sacco members are subject to receive yearly dividends which are dependent on the balance in deposits and share capital.
    Some Saccos have different projects in which their members can invest in for example home properties or land. Members can venture into these projects at an affordable price.
  5. Cheap interest on loans.
    Saccos normally give out low-interest-rate loans which are very convenient. Some Saccos can allow one to borrow up to three or four times their savings. For this to be implemented one will need to have a guarantor or collateral which acts as the security.Saccos are revolutionizing the saving culture in the modern. If you are looking for a platform to start your saving journey, consider joining a Sacco today.