SAVINGS ACCOUNTS

Savings is the regular contribution by the member made on either daily weekly or monthly basis. Savings which are not attached,-not used as collateral for a Loan and subject to the provisions of the bye laws and these policies are free to be operated by the member as and when necessary. Savings can be made in trust by an arrangement between the member and the third party who is making the savings for and on behalf of the member.

1. QUALIFICATION

A member who qualifies to make savings in the Credit Union must be a resident or having permanent business to do at the Berekum Municipality and its environs; as stated in the BEREKUM AREA TEACHERS CO-OPEREATIVE CREDIT UNION LTD bye laws section 34.

In addition the applicant must have;

a) Duty completed the membership Application Form; which is accepted by the Board of Directors for admission into the credit Union.

b) Paid the admission fees as agreed on by members for admission at the time of the application –currently Gh.50.00 per applicant.

c) Subscribed to the Minimum Shares for membership as at the time of application for membership –also currently Gh.200.00 per applicant.

d) And duly accepted as a member of the Credit Union by the BOD or their representatives.

2. MODE OF SAVINGS

a) Savings may be made by any of the following methods.

I. Direct cash payment at the office of the Credit Union during normal working hours 8:30am -4:00pm.

II. Source deductions from the earnings of the member by an agreement between the member, the Credit Union and possibly the source from where the member income’s is to be remitted.

III. Bank Standing orders or Bank transfers where the amount is transferred from the Bank of the member to the Credit Union, receipt of which shall be acknowledged only when there is sufficient evidence of transfer.

IV. Transfer from Savings of another member through a written consent or withdrawal order from the transferring member to the Credit Union.

V. The susu collection procedure either by a collector or the use of Savings Boxes.

b) The savings as made by a member shall be evidence in the member’s passbook and in the statement in the records of the member in the Credit Union’s Office.

c) Entries in the passbook of the member as made by an authorized officer of the Credit Union shall be enough evidence of the member Savings with the Credit Union until it is proved otherwise.

3. MINIMUM SAVINGS

a) A member of the Credit Union must save regularly, at least once a month. Any member who cannot save monthly must inform BOD on writing, for their consent.

b) Total Savings made by a member in a month must not be less than Gh.10.00 cedis. This can be made in installments where necessary.

c) A member can increase or decrease the amount of the Monthly Savings to meet his/her financial abilities so far as it does not fall below the Minimum Savings of Gh.10.00

d) The Total Savings of the member failing below Gh.60.00 shall not attract any interest.

e) The Balance of Savings in the member’s account must not come below Gh.60.00 after six (6) months of membership. A member whose Savings fall below this amount after six (6) months of membership may have the Savings transferred dormant account where no interest shall be earned.

4. INTEREST ON SAVINGS

a) Interest shall be provided on Savings at the minimum rate of 6 % per annum or as may be determined from the budgetary provisions as approved by the members.

b) Interest shall be declared on quarterly basis on the Minimum Savings maintained in the accounts of the members during the period.

c) Interest declared shall be added to the savings of the member at the end of every quarter.

d) The Minimum Savings in a member account that may attract interest during the quarter is Gh.60.00.

e) There shall be display on the notice board of the Credit Union the rate of interest prevailing on all saving products offered by the Credit Union from time to time.

f) Members who don’t service their Loans for three (3) months shall have their interest forfeited.

5. SAVINGS AS COLLATERAL FOR LOANS

a) The savings of a member or part therefore can be pledge as collateral for a loan by the member.

b) A member can be pledge his/her Savings or part therefore as collateral for a Loan by another member.

c) Savings pledge as security for Loan cannot be pledge as security for a second Loan unless the first security for a second Loan unless that security has been released.

6. OTHER CONDITIONS FOR SAVINGS

a) Savings of a member below Gh.60.00, and which it isn’t active for twelve (12) consecutive months shall be transferred to dormant account.

b) Deposit can be made by minors or made on their behalf. Such deposits shall be treated within the framework for which it was agreed to be made by member and shall be treated as Savings, which cannot qualify the minor for loan.

c) Savings of a decreased member shall be paid to the next of kin(s) or heir when there is sufficient evidence of the death and identity of the next of kin(s) or heir is satisfied and the member is not indebted with Credit Union.

d) Members who don’t service their loan according to the contracted terms shall have theirs reduced to clear any Loan and interest due for the period, after six months when the savings is enough to provide the cover.

e) Members applying as candidates must not have less than Gh.1000.00 as Savings in their account; by the time of application, to qualify them for the purpose.

f) Members can open special account to deposit in money for a specified duration of time. Such member may have to negotiate with BOD to agree on the terms of the deposit particularly on the interest to be earned and the period for the deposit.