Monthly Saving Scheme (MSS) (Formerly General Purpose Savings Account - GPSA)
The Monthly Saving Scheme (MSS) is a mandatory savings plan for all members of the cooperative, to be subscribed to during registration. Below are its key features:
Features of the Monthly Saving Scheme (MSS)
- Continuous Savings:
Members must maintain their monthly savings regardless of any loan or debt repayment schedule. - Flexibility in Savings Amount:
Members may adjust their monthly savings amount (increase or decrease) on a quarterly basis, provided the minimum savings amount is maintained. - Eligibility for Welfare Loans:
Members may apply for a non-interest welfare loan of up to twice (or more) their total savings, subject to availability of funds and other criteria.
For example, if Mr. Mustapha saves ₦50,000 monthly for six months (totaling ₦300,000), he can apply for a loan of up to ₦600,000. Loan approvals are granted on a first-come, first-served - Withdrawal Policy:
- Withdrawals are allowed but discouraged to promote long-term savings discipline.
- Members may withdraw amounts exceeding the minimum balance by providing a 21-day notice.
- Withdrawals are permitted only four times a year: March, June, September, and December.
- Termination or Conversion of Membership:
- Members may terminate their membership or switch to Shares-Only Investor (SOI)status by giving a six-month (180-day) notice.
- A 5% administrative charge is applied to the total savings for such withdrawals.
- The same 5% charge applies to members withdrawing over 80% of their savings without prior termination or conversion.
- Savings Conversion:
Members may request that part or all of their savings be used to purchase shares or transferred to a Special Purpose Savings Account (SPSA)at the end of the chosen term. - Dividends for Non-Withdrawals:
Members who do not withdraw from their savings throughout the year are entitled to 30% of declared profits as dividends.
Special Investment Accounts (SIA)
Also referred to as the Special Purpose Savings Account (SPSA), this account is tailored for individuals with specific financial goals such as Hajj, Umrah, vacations, education, retirement, or fixed deposits for investment.
Account holders can deposit a lump sum, make regular contributions, or opt for monthly deductions from their salary for a set period to achieve their target.
Features of the Special Investment Account (SIA)
- Defined Maturity Period:
Account holders choose a “maturity period” (e.g., 6 months, 1 year, 2 years, or more). Withdrawals before the target time are not permitted. - Advance Notice Requirement:
Account holders must provide a 90-day notice prior to the maturity date to access their funds. - Investment-Driven Growth:
Funds in this account are used for investments that aim for multiple turnovers within the maturity period. Upon maturity, the account holder receives their principal savings plus a share of the profits or losses from the investment. - Profit/Loss Sharing Ratio:
Proceeds from investments are shared as follows:- 40%to the account holder
- 60%to the Venture
- Concurrent MSS Requirement:
SPSA holders must also maintain a mandatory MSS account, even if only at the minimum savings level. - Renewal or Withdrawal Upon Maturity:
Upon reaching the maturity period, account holders may withdraw all funds and close the account or renew the term if desired. - Conversion of Savings:
SPSA holders may request part or all of their savings to be converted to shares or transferred to an MSS account upon maturity.
