SACCOs vs Banks: Which is the Most Preferred Savings Option in Kenya?

Most preferred savings option between Sacco’s and Banks at the youth and middle age gap’s in Kenya.

Feb 20, 2023

Life Hacks

Most preferred savings option between Sacco’s and Banks at the youth and middle age gap’s in Kenya.

There are several reasons why it may be more advisable to save your earnings in a Sacco (Savings and Credit Cooperative) than in a traditional bank, especially when you're at your youth and middle ages in Kenya. Here are a few:

Higher interest rates: Saccos usually offer higher interest rates on savings accounts compared to traditional banks. This means that you can earn more on your savings, which can help you to grow your wealth faster.
Lower fees: Saccos generally charge lower fees than traditional banks for services such as ATM withdrawals, account maintenance, and transactions. This can help you to save money on banking fees and keep more of your earnings.
Access to credit: Saccos not only offer savings accounts but also provide members with access to affordable credit. This means that you can borrow money at lower interest rates than those charged by commercial banks.
Cooperative ownership: Saccos are owned and managed by their members, which means that you have a say in how the organization is run. This can give you a sense of ownership and control over your financial future.
Financial education: Saccos often provide financial education to their members, which can help you to develop good money management skills and make informed financial decisions.

Overall, saving your earnings in a Sacco can be a wise financial decision, especially if you're looking for ways to grow your wealth, access affordable credit, and take control of your financial future. However, it's important to do your research and compare the features and benefits of different Saccos and banks to find the right option for you.