Saving

After meeting the regular need of the family to accumulate a portion of the income is called saving. Capital is created from saving. Capital increases the investment capacity of a human being. Saving helps man to take independent decision. Saving helps man to increase income and solvency. As a result, saving can influence to a good extent on health, education and so many other things.

Generally, poor people cannot save because of their small income. As a result, the curse of non-saving puts very often obstructed in their daily life. Saving is the part and parcel of the micro-credit process because of changing the situation of human being.

Different types of Savings:

In the micro-credit process, saving is divided into three parts, such as:

• Compulsory Saving

• Optional Saving

• Special Saving

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.

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.

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:

1. At the time of giving up the membership, deposited all money can be withdrawn. or

2. During membership, keeping an equivalent amount of a certain percentage of distributed loan the balance amount may be withdrawn at any time. or

3. 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-

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

Saving increase income and ensures the solvency of men. So saving is very much essential in micro-credit process. Those members who are not interested in saving or after saving they deposit their saving irregularly or without any justified reason want to withdraw the saving money they are to first make understand the benefit of saving. To be discussed phase wise the benefit of savings in poverty, the role of savings in buildings up capital, the facility for independent investment, help to create employment, the result of saving less ness, etc. But as per rule of the organization, his membership is to be canceled if he withdraws the saving money without keeping the minimum amount in the account.

First balance in the year + balance ÷ 2 × total days of the year = Product × 0.0001643 (Index = at the rate 6% interest for one year of 1 Taka) = Interest, i.e.

Interest to provided = 800 + 900 ÷ 2 × 365 × 0.0001643 = 50.97 or 51.00 Taka
i.e. to find out the interest, the product is to multiply by Index/0.0001643 in the process to find out the interest if there is a  fraction 0.5 above after the point (.) 1 (one) Taka is to be added with the interest in lieu of the fraction and if the fraction below 0.5 will be canceled and nothing is to be added with the interest.