Savings

Deposit or savings is a crucial financial service since it plays a significant role in mitigating risks and uncertainty. Households or individuals keep savings for various reasons such as to tackle anticipated or unanticipated emergencies, to accumulate asset and so on. The beneficiaries enrolled under micro-finance programme are encouraged in savings building to reduce their dependency on credit supports. They make savings following the group norms as well as organizational policy. The staffs along with loan reimbursement also collect the savings during weekly meetings and deposits it to the branch office on the name of the group accounts. The beneficiaries have every freedom to withdraw their savings at any time providing that there is the group regulation and no loan outstanding lies with the beneficiary, who wishes to withdraw the savings. In addition, a new savings scheme on the name of NSSP (NDP’s special savings programme) has been introduced in MFP to popularize and promote savings. Under the initiative, the MFP beneficiaries are encouraged in long term savings deposition at the rate of taka 100 or its multiple figure up to taka 5,000 for a period of 5 to 10 years with an interest of 10%. The beneficiaries found greater interest to be opening new savings scheme and in the meanwhile a total of 14,947 beneficiaries enrolled under NSSP.

Savings Outstanding: At the end of Dec 2021 the total savings outstanding is BDT 988.95 Million with 1,12,002 beneficiaries in 7,024 groups including BDT 289.24 Million with 14,947 NSSP beneficiaries.

Special savings initiatives under ENRICH Project: Saving is one of the methods of capital formation for a household. An asset base is important for a household to lift itself from poverty. Therefore, a special savings scheme has been designed under the ENRICH for the ultra-poor households. From among them, female-headed households and households with disabled members are particularly eligible to join this scheme. Such a household is advised to open a bank account and deposit some money at least BDT 300 per month into it for two years. The amount saved is matched by the PKSF, in terms of grant, at the end of two years, up to a maximum of BDT 20,000 (US$238), on the condition that the total amount will be used to acquire an asset (e.g. land, farm animals, skill upgrading of household members etc.) in consultation with programme personnel. Such an asset base is likely to help a concerned household to move towards a better and sustainable socio-economic future. During the period such 3 (three) savers get BDT 60,000 as matching contribution under this savings scheme, which they have used to acquire affordable appropriate assets.

It has found that Credit Support programme-CSP has significantly contributed towards creating employment generation and increased income could contribute towards accelerating livelihoods empowerment in the rural areas, especially for the poor women beneficiaries thus greatly contributing towards national economy. The poor women contributing to their family income has raised their dignity in the family and society.