Shares/Stock Forced savings in the savings and loan of the employees

[Alexandoy]

This type of savings and loan is an informal undertaking like a club of savers in a particular office. All the members will deposit a certain amount every payday or twice a month to the elected treasurer. The funds will be lent to qualified borrowers which are primarily the members. The interest rate is minimal but with a service charge. The manager and auditor are also elected to oversee the operation.

At the end of the year, the deposited money is returned to the member with the dividend earned from the interest on loans. Usually the earnings is 15% to 20% of the capital which is moderate. But the best benefit is the forced savings. Usually the employee member would buy an appliance upon the receipt of the fund distribution.

 

[Setho]

This is actually a Norm here. Whenever you get a job within a particular circle there are a lot of cooperative societies that are going to bring your office about something like this. They normally open and close the books within a year and it is completely up to you to invest the money that you want. At the end of the year they normally share the profits among themselves.