Land continues to become limited as the population grows. Rich individuals are amassing land at the expense of the poor.

Collective savings will enable CSO staff to own land which will be passed on to future generations

Over and above the paid up share capital of members, NAFASI runs savings accounts for different purposes to enable members, plan for their childrens education needs pay for the health needs Possess land and housing acquire assets and establish businesses save for their retirement.

Each of these accounts accrue attractive interest as a compensation to the member for saving with the cooperative. The interest earned by each member depends on the interests received from members loan repayments.

The main function of any cooperative is to mobilise members to help themselves. NAFASI avails credit to its members at 18%.

Borrowing by members will commence in April 2015. Currently we are accumulating savings and growing steadily in DFCU Bank for six month when the necessary infrastructure will be set for lending.

Over and above the paid up share capital of members, NAFASI runs savings accounts for different purposes to enable members, plan for their childrens education needs pay for the health needs Possess land and housing acquire assets and establish businesses save for their retirement. Each of these accounts accrue attractive interest as a compensation to the member for saving with the cooperative. The interest earned by each member depends on the interests received from members loan repayments.

Categories of savings accounts

1. Mandatory Savings Account:

Every member of Nafasi is expected to save a minimum of UGX 20,000 per month. The amount of money in the savings account will be used as the collateral for borrowing from Nafasi, therefore the more a member saves the better the chance of borrowing a sizeable amount of money that they can use for meaningful business.

1. Features of the mandatory account

1. Interest on this account is paid once a member has a minimum balance of UGX 500,000

2. The interest payment on the account will from time to time be determined by the AGM.

3. The amount of interest will be based on where the cooperative has invested the savings collected in that financial year

4. Every member shall have UGX 1,500,000 before accessing any money from the account unless they would like to fully relinquish their membership from Nafasi.

5. A member can only withdraw anything above the minimum balance of UGX 1,500,000.

6. A free withdrawal can be made once a quarter from this account. Any other withdrawals made will attract a charge of UGX 5,000.

7. This account will be withholding tax exempt as tax on any interest payments received at the corporate level would have already been deducted.

8. The AGM may adjust the minimum savings amount every 6 months within the first two years of probation and every year after Nafasi becomes a permanent cooperative society.

1. Term Saving Accounts

These accounts are used for medium and long-term term needs like acquisition of land, construction of a house, marriage, pension, school fees etc. These accounts are customised to fit the circumstance of individual members.

Features of the term saving accounts

1. Term savings accounts can be demanded upon the expiration of a specified period that cannot be less than 90 days.

2. The savings must remain in the account for a defined period void of which the co-operator loses all the interest that has accrued to that account.

Types of term accounts in Nafasi

1. School fees account

The school fees account is categorised into two:-

1. Termly fees account

This account enables parents to save such that when the new term begins they are prepared for their children’s’ school needs.

Features of this account

1. This account attracts an interest determined by the AGM.

2. Parents will submit the bank slips of their children to the Nafasi accounts office and fees will be transferred to the respective schools.

3. School fees for the new term will be paid as soon when the children get holidays and during the holiday.

4. Nafasi shall not be obliged to pay school fees for children whose parent’s accounts have less than the desired school fees amount

5. Members will enhance their school fees accounts to cope with any adjustment in the fees structure of their children

6. The money in the school fees account shall not be drawn for any other use other than fees

1. Premier fees account

This account is designed for medium and long term fees needs; members are required to undertake a financial analysis with a portfolio adviser at Nafasi to ascertain and agree on their planning requirements before subscribing for the premier account.

Features of this account

1. The minimum opening balance for this account is UGX 100,000

2. The minimum term is 5 year and the maximum will depend on a member’s children’s age and other needs

3. Instalments on this account can be done at any time in the month provided the amounts are in line with the school fees needs of the member’s children

4. There is no access to the money in this account for the first 5 years of the accounts existence

5. A member can only access 30% of this money should there be an emergency that equally requires finances

6. Full access to the money in this account will attract a penalty of forfeiting the interest earned in the account

7. The Interest on this account shall be determined by the investment team and declared to the account holders at the beginning of every financial year.

8. Interest on this account will be annualised but paid on a monthly basis.

9. Fees payment on this account can be done by the member or Nafasi provided the account details are given to facilitate the transaction.

1. Reserve Retirement account

This account is designed to enable Nafasi members save beyond the statutory provisions like the National Social Security Fund and Workplace provident funds that are not necessarily customised to meet the exact retirement need of the member. Members will be required to undertake a personal financial analysis with a portfolio advisor to ascertain their retirement plan before subscribing for a retirement account at Nafasi.

Features of this account

1. The minimum opening balance for this account is UGX 100,000

2. The minimum and maximum terms will depend on a member’s age and when they would like to retire.

3. Instalments on this account can be done at any time in the month provided the amounts are in line with a member’s retirement needs

4. There is no access to the money in this account until the expiry of the period for which the account has been designed.

5. Full access to the money in this account will attract a penalty of forfeiting the interest earned in the account

6. The Interest on this account shall be determined by the finance team and declared to the account holders at the beginning of every financial year.

7. Interest on this account will be annualised but paid on a monthly basis.

8. Members shall access their retirement savings as a lumpsum or they can advise on which life company they would like to buy an annuity.

9. Minimum retirement age will be the statutory retirement age provided for by Uganda Retirement Benefits Act; members are free to decide to increase their retirement age depending on their level of activity at the time of initiating the retirement plan.

1. Health savings account.

Nafasi has members who do not have medical insurance for themselves and their families. As a corporate entity we shall tailor make a health package that enables interested parties to contribute on a regular basis. Details of this product will be finalised once discussions are held with potential insurance companies.

Using the dividend fund, members may provide funding for humanitarian work.