Many are usually torn between banks and Saccos whenever they want to open savings accounts.

While in the past it was a bit confusing because of adequate information, over time, however, Saccos have proved superior to banks. According to Saccos Societies Regulatory Authority(Sasra) Saccos paid an average of 6.8% and 10.55 on shares and capital in the year 2021 while banks had an interest of 4.02% on savings accounts in the same period.

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“The analysis shows that indeed Saccos shall continue to have a competitive edge in the returns earned by the members with the average rate of interests paid by [deposit taking] saccos on members’ deposits increasing from 6.01 percent in 2020 to 6.88 percent in 2021,” Sasra said in its annual report.

“These rates by far exceeded the interest rates paid by banks over the same period which stood at 4.02 percent.”

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Non-withdrawable deposit-taking (NWDT) saccos paid an average interest rate of 6.83 percent in 2021 compared to an interest rate on the deposits of 5.63 percent in 2020.

“Besides interest on deposits, members of saccos also earned returns on their shares in the form of dividends which was paid at a high of 9.44 percent by DT-saccos in 2021 compared to a rate of 8.26 percent paid in 2020,” Sasra said.