Savings products are crucial in mobilizing funds, promoting financial inclusion, and empowering individuals and communities to build financial resilience. RMCL offers a range of savings products tailored to meet the diverse needs of their members. Below is an overview of the common savings products offered by RMCL under the microfinance sector:
1. Group Savings Accounts
Group Savings Accounts allow members to pool their savings with others to achieve common financial objectives. These accounts are often used for collective savings and investment initiatives, such as community development projects, group lending programs, or social welfare activities. Group Savings Accounts promote cooperation, solidarity, and mutual support among members, enabling them to achieve shared goals more effectively.
2. Central Fund Savings
This is a compulsory savings scheme where 5% of the loan amount is deposited in the Central Fund Saving. However, it is not compulsory if the member operates a pension account.
3. Upakar Savings
Upakar Savings is a center account where members deposit NRs. 10 or more at each center meeting. The funds are used for common center expenses, such as construction, renovation, furniture, etc.
4. Regular Savings Accounts
Regular Savings Accounts are basic accounts that allow members to deposit and withdraw funds as needed. These accounts typically offer low or no interest on balances but provide easy access to savings for day-to-day transactions and emergencies. They are suitable for members who prioritize liquidity and flexibility in their savings.
5. Fixed Deposit Accounts
Fixed Deposit Accounts offer higher interest rates compared to regular savings accounts in exchange for locking in funds for a predetermined period. Members can choose the term of the deposit, ranging from a few months to several years, based on their savings goals and liquidity needs. These accounts provide an opportunity for members to earn higher returns on their savings while providing the cooperative with stable funding sources for lending activities.
6. Recurring Deposit Accounts
Recurring Deposit Accounts allow members to systematically save a fixed amount of money regularly, typically monthly. Contributions to these accounts accumulate over time and earn interest, providing members with a disciplined savings mechanism to achieve their financial goals. These accounts are suitable for members saving for specific purposes, such as education, healthcare, or future investments.
7. Special Purpose Savings Accounts
Special Purpose Savings Accounts are designed for members who want to save towards specific goals or expenses, such as education, healthcare, housing, or retirement. These accounts may offer incentives such as higher interest rates, targeted financial planning support, or access to specialized savings products and services tailored to the member’s needs.
8. Festival Savings
Festival Savings is a voluntary savings scheme designed for specific festivals. It aims to cultivate a saving habit and ease economic burdens during festivals.
9. Royal Life Insurance Savings
This voluntary savings scheme provides financial benefits for a specified period and is designed to meet future necessities while providing family protection in case of unforeseen events. RMCL has collaborated with an insurance company to offer life insurance coverage to members.
10. Digital Savings Solutions
With the increasing digitization of financial services, RMCL offers digital savings solutions such as mobile banking, internet banking, and electronic wallets. These digital products provide members with convenient access to their savings anytime, anywhere, and facilitate transactions, transfers, and payments with greater efficiency and security. Digital savings solutions help expand access to financial services, particularly for members in remote or underserved areas, and promote financial inclusion and empowerment.