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Savings Account
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Description
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Features
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Regular Savings Account
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- The minimum deposit and balance shall be R200.
- All withdrawals shall be charged a fee of 13.5% (1.125% per
month) on the amount of the withdrawal per annum.
- Any withdrawal shall be made by cash or electronic
funds transfer (EFT). The member shall be responsible for covering the
costs of electronic transfer.
- The minimum balance in order to earn interest shall
be R200.
- Interest on deposit shall be 5.5% per annum (i.e. 0.45833% per month).
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Organizational/Club
accounts
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Any association, club or similar organization is eligible to operate any of the accounts
as long as their membership is made up primarily of individuals who meet
the eligibility requirements for individual membership.
Clubs or organizational accounts shall be accompanied by a constitution from that
Club or organization stating clearly.
- The aims/goals and objectives of te organization.
- The powers and responsibilities of officials
- who shall make withdrawals and deposit on behalf of the club or organization as well as
how many signatories are required to transact with Boikago SACCO.
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- Clubs/ Organizations shall payR1000 shares and R100
joining/entrance fee and a yearly subscription fee of R300 which shall
be subject to annual increase of 2% when the club is continuing with
their savings.
- Interest paid on this account shall be 7% per annum i.e. .058% per month.
- The minimum balance in order to earn interest shall
be R1000.
- All withdrawals shall be charged a fee of 13.5% on the amount of withdrawal.
- A reserve of minimum of 1% of total savings at the
end of the year shall be maintained.
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Regular Junior Savings Account
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These are savings accounts for meeting the needs of members under the legal contractual age (usually 18 years of age).
This account is used to motivate and establish a pattern of savings at a young age.
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- The minimum balance on this account shall be R100.
- Interest shall be paid at a rate of 7% per annum.
- All withdrawals shall be charged a fee of 8.5% on the amount of the withdrawal.
- Eligibility for withdrawal shall be after six (6) months.
- Minimum deposit of R50 per month.
- This account shall be opened by legal guardian/parent with the child’s Birth Certificate/Identity Document.
- No borrowing is allowed against this account.
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Special Purpose
Savings Account
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- These accounts are for special purposes such as
Christmas, Eid and vacation or any other
special market niche.
- These accounts usually pay a higher interest than
regular savings because the member cannot make any withdrawals from this
account until the specified date.
- This account may be used to secure a loan.
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- The minimum balance shall be R200
- Minimum saving period shall be 12months
- Withdrawals from these accounts shall be made on
maturity. If the funds are withdrawn prior to that date 15% interest
penalty shall apply.
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Fixed Deposit Account
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- These deposits are for a stated amount, until a stated maturity, for a stated interest rate. These funds may be used to secure a loan. The loan maturity shall match the deposit maturity.
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- Minimum and maximum period to fix shall be twelve (12) months to 5 years
- Interest shall be paid at a rate of 7% per annum.
- The interest rate is fixed until maturity. Interest shall be paid upon maturity.
- Withdrawals shall be charged a fee of 8.5% on the amount of the withdrawal.
- These funds shall be used to match against loans and investment of similar maturity.
- The minimum deposit for a fixed deposit shall be R1 000.
- No withdrawal shall be made from this account. If the funds are requested prior to maturity there shall be a penalty (forfeiting half the interested earned for prior withdrawals 50% or ½ of the interest for the period earned.
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