There are many benefits to saving and taking out loans from cooperative financial institutions like Isikhungo Sabantu FSC. Firstly, they offer very competitive interest rates on savings, meaning that your money will grow at a faster rate than if it were kept in a standard bank account. Second, they provide low-interest loans to help individuals get out of debt and begin a financial freedom journey.
When it comes to saving money, there are two main options: investments and savings. Both have their own advantages and disadvantages, so it’s important to understand the difference between the two before deciding where to put your money.
Savings accounts are a safe and secure way to grow your money over time, as long as you don’t need access to it immediately. The interest rates on savings accounts are typically lower than those of other investment options, but this means that your money will grow more slowly. Cooperative financial institutions (CFI’s) like Isikhungo Sabantu FSC offer competitive interest rates on savings, so your money can grow at a faster rate.
Investment Account (CFI)
In comparison to investment in other financial institutions, CFI investments do not carry risk; you can’t lose your money in any way. Investments, offer the potential for higher returns but also come with more uncertainty. The rate can vary anywhere from 2% to 10% depending on how the investment is doing. You may get less out of you investment if the market takes a turn, but over the long term, investments have the potential to grow much faster than savings.
So, which is better? It depends on your individual circumstances and goals. If you need access to your money right away, savings is the better option. If you’re willing to take on more risk for the potential of higher returns, investments may be the better choice.
No matter what you decide, saving with a cooperative financial institution like Isikhungo Sabantu has many advantages over saving with a commercial bank. cooperative financial institutions are member-owned and operated, so they’re more focused on serving their members than making a profit. This means that they offer better interest rates on savings and loans, as well as member-only benefits like low-interest loans and free financial counseling. If you’re looking for the best way to grow your money, saving with a cooperative financial institution is a great way to go.
CFI’s are member focused, not money focused
There are many advantages to taking a loan from a cooperative financial institution like Isikhungo Sabantu, as opposed to a commercial bank. cooperative financial institutions are member-owned and operated, so they’re more focused on serving their members than making a profit. This means that they offer better interest rates on savings and loans, as well as member-only benefits like low-interest loans and free financial counselling.
CFI’s understand life circumstances
Cooperative financial institutions are also more likely to work with you if you have bad credit, as they understand that life happens and people sometimes fall on hard times. Commercial banks, on the other hand, are much more likely to deny a loan to someone with bad credit. If you need a loan but have bad credit, a cooperative financial institution is a great option.
In general, taking out a loan from a cooperative financial institution is a better option than taking out a loan from a commercial bank. Cooperative financial institutions offer lower interest rates, better terms, and more member-focused benefits. If you’re not sure about which product to go for, contact us. CFIs are really easy to reach and talk to and are extremely flexible and always find a way to find a compromise that suit the member when needed.
Overall, saving, taking out loans, and investing with Isikhungo Sabantu financial services cooperative has many advantages over doing so with a commercial bank. Isikhungo Sabantu is member-owned and operated, so they’re more focused on serving their members than making a profit and the profits go back to the members, not to enriching a minority.