Savings Products

Stima Sacco has a wide range of savings products. These products are tailored to meet various needs of a diversified membership with each member’s unique need being catered for in this array of products and services

TYPES OF SAVINGS PRODUCTS OFFERED


1 SHARES OR EQUITY CAPITAL

Each member shall purchase at least one share of Ksh.100 each. Shares shall not be refundable or assignable as collateral for a loan, but a member may transfer his shares to other members on leaving membership of the Society.
Shares may earn dividends paid from net surplus after required transfers to reserves at the end of a financial year in accordance with the dividend policy of the Society.


2 DEPOSIT ACCOUNTS

These deposits may be used as collateral against borrowings from the Society and shall only be refunded when a member withdraws from membership and provided the member has fully repaid all his debts and is free from guarantee. Deposits may however be transferable from one deposit account to another provided the transaction does not contravene the Savings policy.
Non-withdrawable deposits shall be contributed on a monthly basis or at such prescribed periods and in such amounts as may be prescribed in this policy. Non-withdrawable deposits shall be refundable within sixty days after receiving a written notification from the member.
Interest on deposits shall be paid at a rate that shall be determined by the board at the end of the year after audit has been completed. The interest may be eliminated if the financial position of the Society and capital adequacy does not permit payment.
The Society shall operate the following accounts as non-withdrawable deposits:-

2.1 Deposits
Alpha deposits may be contributed on a monthly basis by members provided that no member shall contribute less than Ksh.1000. Members with loans shall contribute at least one percent (1%) of the loan taken subject to the following limits:-
Loan upto Ksh.2,000,000 mandatory minimum ksh.5,000
Loan upto Ksh.5,000,000 mandatory minimum Ksh.10,000
Loan above Ksh.5,000,000 mandatory minimum Ksh.15,000
Alpha deposits shall be used as collateral against borrowings both by an individual borrower or as guarantee for loans to other members.

2.2 Omega Deposits
Omega deposits shall be contributed on a monthly basis by members under the “Omega” category provided that no member shall contribute less than ksh.500. Omega deposits shall be used as collateral against borrowings both by an individual borrower or as guarantee for loans to other members under this category.
A member shall be at liberty to transfer his Omega deposits to his Alpha deposit account provided the deposits are free of any liabilities.

2.3 Fahari Deposits
Fahari deposits shall be contributed on a monthly basis by members under the “Fahari” category provided that no group shall contribute less than Ksh.3,000. Fahari deposits may be used as collateral against borrowings by the group account only.

2.4 Flex Deposits
Flex deposits shall be contributed on a monthly basis by members who do not fall under all the other categories of membership, but are regular patrons of some services offered by the Society, provided no member contributes less that Ksh.750. Flex deposits shall automatically act as collateral for all borrowings by the member, but shall not be used to guarantee borrowings by other members.

2.5 Biashara Deposits
Biashara Deposits shall be contributed on a daily, weekly, monthly, or as a member’s business cycle may permit. These deposits shall be contributed by members under the “Bishara” category provided that no member shall contribute less than Ksh.6,000 per annum and on a regular basis.


3 WITHDRAWABLE DEPOSITS

The Society shall operate withdrawable savings which shall be discretionary savings accounts. These deposits accounts shall prescribe terms and conditions of opening, operating and closing accounts, interest rate calculations and payments, penalties and other charges. In additions the SACCO shall make the following information available to members:-
(a)The minimum amount required to open an account and the minimum balance to maintain it;
(b) The minimum interest bearing balance;
(c) The interest rate and fees applicable;
(d) The penalty for early withdrawal or withdrawal above set limits, if any; and
(e) The maturity of a term account.
For joints and group accounts, disclosures made to any one of the members shall be deemed to be made to all members.

3.1 Prime Account
The Prime Account is a withdrawable deposit account that members use as a transaction account and can also be used for savings purposes. The account caters for members’ regular transactions like salaries and loans processing; cash and cheque deposits; electronic funds transfers; standing orders etc. The account operates as follows:-
a) The account maintenance balance is Ksh.1,000
b) The minimum interest earning balance is Ksh.15,000
c) Interest is calculated monthly and credited at the end of the year; that is 31st December every year.
d) The Prime Account holders are eligible for ATM card services which shall be issued and operated in accordance with the Society’s ATM card procedure.
e) A member can make regular savings to the Prime Account through a check-off arrangement with the employer.
f) The account attracts no monthly charges or account maintenance fees.
g) Withdrawal fees shall be in as stipulated in the Fosa Tariff Guide.
h) Maximum withdrawal limits will be in accordance with the Fosa Tariff Guide.

3.2 Twiga Savings Account
The Twiga savings account is a withdrawable deposit account which gives members a facility to save for certain eventualities like education, holiday, Christmas festive season, wedding etc. The account operates in the following manner:-
a) A member saves a minimum of 1,000/- per month usually through check-off or standing order.
b) A member who opens a new account has to save consistently for at least six months before they can withdraw, however for an existing account, a member may access the funds after every three months.
c) The account has got no minimum account maintenance balance.
d) Minimum interest earning balance is Ksh.7,000
e) Interest is calculated monthly but credited at the end of the year; that is 31st December every year.
f) Withdrawal fees shall be as stipulated in the Stima Sacco Tariff Guide.
g) The account attracts no monthly charges or maintenance fees.

3.3 Mustard Account
The Mustard account is a withdrawable deposit account that provides members with a savings facility for “fall back”. The savings that are done on a monthly basis, usually through check-off, target members who have a need to accumulate small savings for a long time, which they can withdraw when employment ceases prematurely, when they retire or when seriously ill. The account works in the following manner:-
a) A member saves a minimum of Ksh.300 monthly through check-off.
b) All deposits from Ksh.300 and above earn interest which is calculated monthly and credited at the end of the year.
c) Interest rates are on a graduated basis; that is the higher the deposits the higher the rate.
d) Withdrawal of 25% of the deposits is allowed every three years or when a member leaves employment either prematurely, retires normally or is critically ill.
e) Mustard Savings cannot be used to offset an individual or a defaulter’s loan unless a member is a defaulter himself or has pledged the savings as collateral for a loan.
f) Interest is calculated monthly and credited at the end of the year; that is on 31st December every year.
g) Withdrawal fees shall be in as stipulated in the Fosa Tariff Guide.
h) The account attracts no ledger or maintenance fees.

3.4 Junior Star Account
The Junior Star Account is a savings account designed to provide a savings facility for parents to save for their children who have not reached the majority age. The account helps parents to plan for their children’s education through savings accumulation for a long period of time. The account operates in the following manner.
a) The member opens an account for each and every child as he wishes.
b) The account name is the child’s name, while the parent has the sole mandate to operate it.
c) The minimum monthly saving for each account is Ksh.250 mainly through check-off but any other mode is also acceptable.
d) Withdrawal from the account is permitted after every four months provided a balance of Ksh.500 is maintained.
e) Withdrawal before four months are over may be permitted at a charge of Ksh.150 per withdrawal.
f) Minimum interest earning balance is Ksh.5000
g) The rate of interest will be based on amount and time of deposit; the higher the amount and the longer the period, the higher the rate.
h) The account attracts no monthly charges or account maintenance fees.
i) Withdrawal fees shall be in as stipulated in the Fosa Tariff Guide.
j) Children receive a birthday card every year.

3.5 Fixed Deposit Account
The Fixed deposit account is a withdrawable deposit account where depositors can place short term deposits for specified periods of time usually between one to twelve months. The account targets members with large sums of money that they have put aside for investment and they are fairly certain of the period that they can commit the funds. The account operates as detailed below.
a) Fixed Deposit Account is suitable for deposits where the customer is fairly certain of the period that he can commit the funds.
b) Minimum deposit Kshs.50,000
c) Interest is computed daily and credited at the maturity of the contract period.
d) Accrued interest is forfeited if a depositor withdraws the funds before the maturity date.
e) The customer is issued with a Certificate of Deposit upon depositing the money.
f) The Certificate of Deposit details the amount deposited, date deposited, interest rate applicable, contract period and the maturity date.
g) Upon maturity the depositor can rollover the principal together with the interest or collect interest and rollover the principal or collect both principal and interest.

3.6 Silverseed Account
The Silverseed account is a withdrawable deposit account that targets savers who have a need to accumulate some funds for investment and do not wish to tie the deposits for a specified period in the Sacco.
a) The account targets both members’ funds to deposit for unspecified period of time and those that wish to accumulate some funds through monthly savings.
b) The account allows monthly savings of Ksh.5000 through check-off.
c) Minimum interest earning balance is Ksh.10,000
d) Interest is on a graduated rate; the higher the amount the higher the interest.
e) Withdrawal fees shall be in as stipulated in the Fosa Tariff Guide.
f) Withdrawals are done as and when a member wishes to do so without restrictions.

3.7 Fahari Savings Account
The Fahari Savings account is a withdrawable deposit account that targets members with group savings commonly known in Kenya as “chama”. The members of the group need not be Sacco members provided one of the group members is a Stima Sacco member. The terms and conditions of the account are:-
a) The group must have at least one member who is a Stima Sacco member.
b) The group must at least three signatories to the account.
c) Minutes of the group meeting authorizing the officials to open the account shall be required to open the account.
d) The group must have a name preferably registered.
e) The mode of contribution is check-off, standing order or by direct deposit.
f) Minimum account maintenance balance is Ksh.2,000
g) Minimum interest earning balance is Ksh.20,000
h) Withdrawal fees shall be as stipulated in the Fosa Tariff Guide.
i) The account has no monthly charges like ledger fees, account maintenance etc.

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