This is savings done by all members of a group in micro-credit program. Micro-credit savings/deposits must be made by all group members whether he or she is loaned or not. The savings partially secure the member loans, determine the size of the loan and also build the members asset base. The minimum contribution of saving per member is ksh.400 per month.
Savings Transfer and Refunds
The savings of a member can be transferred to another group member. To effect this group must write a letter in request of this and be signed by three group officials i.e. chairman, treasurer and secretary. The letter must be forwarded to micro-credit officer for approval.
Savings refund will only be made in the following circumstances subject to approval by the Micro-credit Officer, without prejudicing micro-credit loaning policy.
1. On termination of membership
2. On forfeiture
3. Death of a member, refunded to appointed beneficiaries or kin.
4. Dissolution of a group.
Every group member undertakes to forfeit his savings in the event of default of loan by a member or members of the group as they acts as guarantors.
- TN SACCO deem an account as dormant if no transaction have been made therein for a period of six months.
- TN SACCO considers savings and any other sum due to member as abandoned if the member or his nominee has not contacted the SACCO society in person or in writing within a period of 5 years or has otherwise not indicated an interest in the funds.
- Where funds have been deemed abandoned the board of Directors of TN SACCO shall give 90 days’ notice to the member or nominee at the last known address of its intention to close the account and transfer the abandoned monies to the public trustee.
- The board of directors may transfer the abandoned funds to a person whose name appears in the society record as a nominee or beneficiary.
- Where the member or nominee cannot be traced, the board of directors may, with approval of the annual general meeting transfer the fund to the public trustee, and shall inform the member or other interested party by way of notice of the action taken using the last known address.
Savings Protection Measures
Various protective measures for savings are considered in TN SACCO, these are:
1. The handling of accounts and withdrawals shall only be done by the saver, who can authorize the withdrawal or be directly authorized by the appropriate authorities.
2. Marking of dormant account to protect them from unauthorized withdrawal.