Saving

In personal saving, individuals can deposit money anytime they want. They can withdraw money any time, keeping a minimum balance. The procedure of personal saving goes as follows:

1) Individuals can deposit amount anytime they want, but the members cannot deposit or withdraw amount less than Rs. 100. That is, the minimum amount of transaction is Rs. 100.

2) Normally, anyone can withdraw amount from a member’s account with proper check payment having necessary signature of the concerned member. However, this system is not completely realized. Hence, through proper credentials one can perform the transaction until the system is implemented.

3) To open the account one should deposit minimum amount of Rs. 500

4) In this kind of saving, the interest is calculated each 6 months. Members are provided with both passbook and checkbook. Application form is provided when individuals proceed to deposit money.

5) To withdraw amount more than Rs. 100000, the organization must be informed one day ahead.

In child saving, the children, grandchildren or adopted children, below 16 years, of any shareholders can open account, keeping the shareholder as guardian for the child. The procedure is as follows:

1) Keeping the shareholder as guardian, a separate account for the child can be created and all savings can be done in that account.

2) In this type of account, a minimum of Rs. 100 is to be deposited each month. Passbook is provided. The deposit is done after processing of the receipt.

3) The money deposited is not withdrawable until the child is 16 years old. However, in drastic conditions where the child is sick, and the family cannot afford for the cure or in the case of demise, the money can be returned by the decision of the Board.

4) When the child reaches 16 years old, the money in the account is used to buy the minimum shares of the company, and the child becomes one of the shareholders. The remaining amount in the previous account is used to form a monthly saving account and the interest as provided accordingly. If the child saving account holder is male, all the saving is returned to the account holder and no more procedure is followed.

5) If any account is closed before the child is 16 years old, Rs. 200 is deducted; and if the account is closed after the child is 16 years old Rs.100 is deducted for the service provided by the company.

For festival saving, individuals can save money for cultural and religious occasions in monthly basis. The money can be withdrawn in the specified day of the festival. The minimum amount to be deposited in this account is Rs. 500.   The money can be withdrawn before the specified event by paying Rs 200. The account holders can again save money for the festival for the next year or event. The interest calculation is done like in monthly saving account but the rate may differ.

1) 100 is deducted for service if the account holder wants to close this kind of account.

In daily saving, the members need to deposit money every day. The procedure is as follows:

1) Every day, employees of the organization would collect money for the daily saving from the account holders in their home or at work. The member of this account need to deposit at least Rs. 100 daily.

2) Regular savings is accumulated in the organization, and deposited in the respective daily account. If for some reason member cannot deposit the amount, he/she needs to deposit it the next day.

3) In this kind of saving the account holder can leave 10% amount in the account and can withdraw the remaining amount after one month.

4) The interest is calculated in daily basis and is provided at the end of each six month.

The organization would charge Rs. 100 if member wants to close this account.

In periodic saving, fixed amount of money is deposited for fixed amount of time, and when the time completes, the entire amount can be withdrawn. The time-period for such saving is minimum of two-three years. After this time-period, if the member does not want to withdraw money he can renew the account for the same time-period. Normally, the interest is calculated every 3 months and the interest is added to member’s personal account. In other cases, the process of interest calculation is done according to board’s decision.

1) The minimum amount that can be deposited is Rs 50,000 and the maximum amount that can be deposited depends on the amount accepted by the organization at the time of deposit.

2) The interest rate provided by the organization is given below:

• 1 Year: 11% interest
• 2 Years: 11.5% interest
• 3 Years: 12% interest

3) The interest is calculated daily from the day the account is created (taking 365 days as average days for a year)

4) To open this account, member must compulsorily have their personal account.

5) Every 3 months, the interest is transferred to the member’s personal account.

6) The interest rate remains the same for until the time-period terminates.

7) The amount deposited in this account cannot be withdrawn until the time-period finishes. However, if the member needs to withdraw amount before the time-period finishes, he can take loan up to 90% of the deposited amount.

8) In such kind of loan, the member must pay additional 2% interest. Nevertheless, he/she does not have to pay the service charge.

9) After the time-period finishes, until renewal, no interest is given for the amount deposited.

10) According to the need of the organization, the right to take or not take the deposited amount is safe with the organization.

In educational saving, money is deposited monthly for the school or higher education of children of the shareholders of the company. The account is created in the name of the children. The procedure is as follows:

1) This account can be created at any time.

2) When opening this account the shares, company’s development and entry fee is not needed. The account can open from Rs. 200.

3) Minimum of Rs. 100 needs to be deposited every month after the account is opened.

4) The money in this account can be withdrawn during the child’s admission in school or college; or in case of paying monthly fee of the child.

Rs. 100 is deducted as service charge if such account needs to be closed.

In business saving, the members can create saving account for easiness in his own daily business. If the member has insurance, the insurance is paid through this account. The procedure is as follows:

1) In this account minimum of 200 needs to be deposited.

2) Normally, anyone can withdraw amount from a member’s account with proper check payment having necessary signature of the concerned member. However, this system is not completely realized. Hence, through proper credentials one can perform the transaction until the system is implemented.

3) For the life insurance of members, L.I.C provides insurance program.

4) The facility to pay the yearly insurance amount directly from this monthly account is provided by the organization.

Rs. 200 is reuired to open this account.

In provision fund saving, certain portion of the employee’s salary, plus some money provided by the company for provision saving is deposited in the name of the employee. For this saving, a new account including proper employee’s name, organization’s name, post is created. With recommendation of the organization, the employee can withdraw 40% of the amount after 5 years of working. However if the employee leaves the organization, the entire money is withdrawn.

1) 10% of the employee’s salary that he earned with additional 10% of the employee’s salary funded by the company is deposited in this account.

2) Interest in this account is provided every 6 months.