This is a compulsory saving that must be contributed by all members of Coopital Cooperative as a condition of membership and to access credit (loans) otherwise face the risk of been expelled from the society for non-performance. Compulsory saving is a saving that a member is compelled to make on a regular basis; it is a membership saving and must be saved on a daily, weekly or monthly basis. The minimum monthly savings have been set at N5,000. It is the only type of savings that is eligible for dividend payment while other types of savings earn only interest. This compulsory saving is collected to lend to members. If members fail to save on time they will get penalized based on the saving policy of the society. Unless a member quits the society, he or she should save on a regular basis. If a member wants to withdraw from Coopital Cooperative, it is only under this condition that compulsory savings may be withdrawn. Exit from the Cooperative is only permitted after 12 months of joining the society.
As the name implies, it is a voluntary saving, not for access to loans but for the sake of saving. These are not an obligatory part of accessing credit services. They are provided by both the borrowers and non-borrowers who can deposit or withdrawal according to their needs. The voluntary savings are best fit for people who don’t receive constant cashflow like farmers, traders and other self-employed persons who get incomes when they sell off their product or receive contract proceeds. They can make voluntary saving during harvest time, receipt of contract payment and transfer monthly to their compulsory saving accounts. Members can save the full amount for the coming year’s compulsory savings in advance with the society by depositing 12 months worth of saving in a voluntary account. Following that, the member can give a standing order instruction to Coopital Cooperative for each month on the appropriate day to withdraw the amount of one month’s compulsory saving from the voluntary saving account and deposit it in the compulsory saving account. This maintains the fundamental function of the cooperative and allows individuals with seasonal incomes to be members. This ensures a regular flow of cash to the Coopital Cooperative society and promotes members participation. This kind of saving can be withdrawn at any time when the owner needs it. Coopital Cooperative society may or may not provide saving interest for this voluntary savings. Members are highly advised to save on voluntary saving for small capital investment into their businesses. All that is needed is to save towards whatever goal a member has set for him/herself. This type of savings may earn interest but not eligible for dividend payment.
A fixed deposit is an investment and a form of savings that earns you a higher interest rate. This kind of savings account is where a member saves to meet a particular goal. It is a savings focused at achieving a goal e.g school fees, rent, car purchase, vacation, land acquisition, wedding ceremony, burial, house buying, etc. The fixed deposit account allows a member to deposits once and they withdraw the money after a period of time. The time ranges from 3 months onwards. This type of savings earns a higher interest rate which is varied by the cooperative from time to time but is not eligible for dividend payment.