Saving and credit cooperative societies (SACCOs) are often considered good for several reasons.
Saving with a savings and credit cooperative society (SACCO) is often considered better than saving with a bank for several reasons, including:
- Higher interest rates: SACCOs typically offer higher interest rates on savings compared to traditional banks, which can result in higher returns for the customer.
- Community-based focus: SACCOs are owned and operated by members, who are also customers. This creates a community-based focus, where members are more likely to be supportive and understanding of each other’s financial needs.
- Personalized services: SACCOs are often smaller and less bureaucratic than traditional banks, which can result in more personalized services and better attention to individual customer needs.
- Loan access: SACCOs often provide loan services to their members, which can be beneficial for customers who need to access credit for personal or business purposes.
- Social impact: SACCOs often have a social impact focus, where profits are reinvested in the community to improve quality of life and create economic opportunities.
That being said, SACCOs are also subject to regulatory and operational risks, and it is important for customers to carefully consider the terms and conditions, including interest rates, loan terms, and fees, before making a decision to save with a SACCO. Additionally, while SACCOs may offer higher interest rates, they also tend to have more limited financial products and services compared to banks.