Benefits of Buying Shares in a Sacco [2022]

Shares refer to the equity capital one employs in a Sacco. It gives you the right to share ownership of a Sacco. That is to say, you become a shareholder. Share capital is different from your usual deposits. in the sense that deposits can be used in conducting the usual transactions while a share capital account is only meant for generating dividends and acts as collateral against loans.

Being a shareholder not only happens in Saccos only but also in profit-making companies and institutions since they form the primary source of income. Interested individuals are invited to buy the share in the respect that they will be beneficiaries when the company makes a profit.

But why would someone prefer buying shares in a Sacco rather than any other company? Because of many benefits which are attached to being a co-owner of a Sacco. Being a shareholder in a Sacco attracts the following benefits

1. Member and Owner

Unlike other financial institutions like banks where you just become a customer, but have no sense of ownership, Saccos are different. In Saccos, your share capital gives you the right to be a member and an owner.  You get to the center of what is happening within the Sacco.

Your shares give the right to know and follow up on how the management conducts the Saccos activities. You act as the boss and nothing can be done behind your back. It promotes transparency.

2. Equal Rights and Voice

In a Sacco, every member has equal rights. You contribute equally to the economic affairs of the Sacco. It is because of your shares that you contribute collectively to run the long-term objective for which the Sacco exists.

There are also occasional educational programs to enlighten members on how Sacco runs and its funds are managed. In other words, there is economic empowerment of members through educative forums.

3. High Dividends Rates

Dividends are the accumulated bonuses that you enjoy against your share capital. You receive the bonuses at the end of every financial year depending on the performance of the Sacco. They are proceeds of benefits accrued by the Sacco out of interests.

Many companies award dividends to their members, but the ones from Sacco come with higher rates. You earn dividends depending on the number of your shares and accumulated deposits. The rates are impressive. Some Saccos have high rates of up to 20%, which translates to a lot of money depending on your shares.

4. Variety of Shares

Certain  Saccos carry out different development projects on which their members can commit their money in form of shares. Investments such as real estate, government securities, or any other project approved by the members.

Investment projects attract profits that are shared among Sacco members depending on the share capital invested per individual. The higher the share capital, the more dividends you get.

5. Higher Interests Rates.

As you have read, Saccos’ dividends attract higher interest rates. It motivates the majority of investors to buy shares from a Sacco. Unlike bank savings, shares yield good returns yearly which go directly into the pocket of members. It is the best way to keep your money compared to the fixed deposits with banks.

The high interests promote the economic life of members as they can channel them to different personal investment plans. With time, you may find your financial freedom.

Bottom Line

If you want a place where you can develop yourself pretty fast then buy shares in a Sacco. Apart from the high-interest rates on dividends, you will enjoy additional benefits, like pooling resources together, financial education, and investment opportunities. You will rarely lose track with a Sacco.



Categories: General

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