Shares and savings

Shares and savings, kept the way the law reads

Shares are the SACCO’s capital and savings are the members’ money. Akiba Ledger keeps the two apart, with the rules each one follows.

Sample SACCOMembers

Member statement

0142 · Sample member · to 15 Oct · UGX

Shares	400,000
Savings	1,250,000
Loan balance	1,678,950

Date	Entry	Amount
15 Oct	Savings, mobile money	100,000
30 Sep	Loan repayment, check-off	351,050
30 Sep	Shares, check-off	20,000

Drawn sample with made-up figures. Akiba Ledger is in development.

Shares, permanent capital

In office mode, shares are equity: never withdrawn, never security for a loan, and no member may hold more than a third of the share capital.

A share price and a minimum holding set by the SACCO.
The one-third limit checked on every purchase.
Leaving members transfer their shares or sell them back through the Share Transfer Fund.

Savings products

Compulsory savings, voluntary savings, fixed deposits and special purpose savings such as school fees, each with its own minimum, interest and withdrawal rules.

Withdrawals with a second officer

A teller pays small withdrawals at the counter. Above the limit you set (UGX 1,000,000 by default), a second officer approves first.

Always approved: withdrawals from dormant accounts and by members in arrears.
Free savings only: savings held as a guarantee for a loan cannot be withdrawn.
Online only: money going out needs a live balance, so a phone with no network cannot pay a withdrawal.

Interest on savings

Interest worked out on the daily or monthly balance as each product says, posted as one run, with the parts adding up exactly to the total.

Dormant accounts

Accounts with no activity for 24 months are flagged and the member notified, on the stricter rule for licensed SACCOs. No maintenance fees are charged on them.