Leo, let's talk about Saccos vs Banks

A SACCO stands for savings and credit co-operative. As the name indicates one can save in a SACCO and get loans as well.

A bank is a financial institution that is licensed to accept checking and savings deposits and make loans.

Here comes the big question, why save in a SACCO instead of saving in a commercial bank?

Here are some of the benefits of joining a SACCO

1. Well for starters most people cannot qualify for a good loan in a bank whereas a SACCO gives a loan that is up to three or even 5 times your savings.

2. More to that a SACCO gives its members higher interest rates on savings, unlike banks that give simple interest on savings which is very low.

3. A SACCO gives its members flexible repayment. Giving you enough leeway to repay the loan without much hassle and Basel.

4. As a member of a savings and credit cooperative, you are given dividends at the end of every financial year. If you have been following my blog posts I’ll have you know that this is another way of making your money work for you.

5. Another benefit is that as a member of a SACCO you can use your dividend earnings to offset an already existing loan. Very awesome if you ask me.

Do you dream about owning your own home? Well, I do. And a SACCO can help you achieve this dream. 6. As a member of a SACCO, you can have the SACCO develop property on your behalf.

Some Saccos even give their members the chance to buy land at a discounted price.

I bet you can clearly see where my bias rests.

Let me know between a Bank and a Sacco wewe unaprefer gani?