Saving your hard earned cash is something you should take seriously especially when you have a long term plan. Though an individual can save in banks or Saccos, it is worth analyzing carefully what route to take.
Before we go far, I would honestly inform you not to save your money in Banks that are owned by a single individual. Such banks might collapse anytime and leave you greatly devastated.
We have seen cases where poor Kenyans have lost lots of cash after entrusting poorly managed banks with their money.
In the case of Kenya, banks like KCB, Cooperative, Citibank and Standard Chartered Bank are very stable. Such banks don’t rely only on customers’ deposits for their operations, they have invested heavily on Real Estate and also have other solid investments that can cushion them against financial shocks.
SACCOs are also good when it comes to investing your money, but you must be extremely careful which SACCO to join. First, ensure that the SACCO you want to be part of has been in existence for more than 20 years.
You should also consider who owns the SACCOS.Some of the best SACCOS include Mwalimu,Stima,KUSSCO and Harambee.They are owned by very stable institutions, and you won’t expect them to go under any time soon.
When it comes to owning shares, SACCOS are much better compared to banks, since their loans attract interest of not more than 1% per month.
The interest charged by banks in Kenya is abnormally high. Most banks charge not less than 16 % annual interest rate.
The only advantage of saving in banks over SACCOs is easy access to your money. Banks have ATMs everywhere, so withdrawing money is there and then.
