- Minimum monthly saving
- KES 2,000
- Due by
- 10th of the following month
- First guarantor
- The principal member
This product has been developed for the spouses of principal members. The spouse is classified as a member outside the common bond of the original member.
- Savings should be made regularly and consistently, usually monthly, not later than the 10th of the following month.
- Minimum monthly saving is KES 2,000, subject to periodic review.
- Additional savings can be made at any time of the month.
- Deposits cannot be withdrawn in part or in full unless the member resigns from the Society.
- Deposits are the basis of the member’s loan entitlement.
- Deposits committed for loan guarantee cannot be claimed by the member until freed from guarantor obligations.
- Guaranteed deposits are considered held in trust by the Sacco while the loans are running.
- Active deposits are eligible for any annual interest declared by the Sacco from surpluses for each financial year. The Sacco holds the discretion to deny annual interest to dormant members.
- Interest earned can be paid to the member in cash or re-invested in this or any other savings product, as resolved by the members in an AGM.
How spouse deposits are treated for loans
For loaning purposes, savings in spouse accounts are treated differently from savings held in a normal member account:
- The original member who is the spouse of the member will be the first guarantor on any loan he or she applies for.
- The total deposits of the other guarantors (excluding the spouse member) plus those of the loan applicant should be enough to cover the loan applied for. However, in case of default, the deposits of the first guarantor shall be used to offset the net default after the defaulter’s deposits, before the other guarantors can be attached.
- Amounts committed in guarantorship by a spouse member to a member outside the common bond shall not be available to guarantee other loans in Magister, but can be used for loan eligibility.