a) What is Savings and why
Different types of Savings:
In the micro-credit process, saving is divided into three parts, such as:
Compulsory saving: As per the decision of the organization, on the scheduled meeting day every member is to deposit a definite amount regularly is known as the compulsory saving. To build up own capital this compulsory saving is deposited.
Optional saving: Within the consent of the organization and the somity members to accomplish different works the group saving or personal saving are known as the optional saving, such as personal voluntary saving, somity welfare saving, etc.
Special saving: To develop the member or for a special purpose the saving done is known as the special saving such as the saving due to death equity loan (Life insurance), saving for education, disaster management, periodical saving, etc.
b) Amount of savings product
Compulsory Saving: Considering the ability of the members the compulsory saving amount is to be decided so that the members can deposit the amount on the somity meeting day. On the basis of the loan amount this saving amount may be decided i.e. certain percentage of the proposed loan amount may be deposited. Steps may be taken to deposit the amount in the somity meeting regularly.
Optional saving: The amount of the optional saving is to be decided as per consent of the individual member or combined decision of the somity. To build up capital and to use the money as per need the members will deposit any amount as per their will and capacity. If the account is combined, the amount to be deposited will be decided combinedly.
Special Saving:If the account is operated for a special purpose, the organization together with the members will decide the amount. For saving money due to the member’s or its family members special purpose the amount may be decided on personal decision.
c) Deposition of savings and its withdrawal
Compulsory Saving: On the scheduled meeting day every member will have to deposit a definite amount of money under compulsion. On the meeting day after taking decision for withdrawal as per rule of the organization any one of the following steps may be followed:
At the time of giving up the membership, deposited all money can be withdrawn. or
During membership, keeping an equivalent amount of a certain percentage of distributed loan the balance amount may be withdrawn at any time. or
During membership, keeping certain minimum deposition or a certain ratio of the taken loan the balance amount may be withdrawn at any time.
Special and optional savings: As per understanding established previously among the organization somity and the members, deposition and withdrawal will be done in the meeting. Such as-
Saving for Child Education: As per the previous decision, a definite amount is to be deposited in the regular meeting and may be withdrawn at any time as per the decision of the meeting.
Co-ordination savings due to death compensation (Life Insurance): Due to death of the member, the balance part of the loan is to be deposited in a certain period of the year or certain amount may be deposited at the time of taking the loan. Due to the death of the member, the amount may be withdrawn as per the decision of the meeting.
Disaster management savings: As per the previous decision, a certain amount is to be deposited in the scheduled meeting and the amount may be withdrawn at any time for disaster management as per the decision of the meeting.
Somity welfare savings: As per the decision was taken previously by the members a certain amount is to be deposited in a scheduled meeting and can be withdrawn at any time as per the decision of the meeting.
Periodical savings: As per the previous decision, the member will deposit a certain amount personally in the scheduled meeting and can withdraw the same according to the decision of the meeting.