Dividends & Interests
USBL Dividends and Interests?
Dividends and interests are distinct ways members can benefit financially from their involvement:
Dividends
Return on Ownership (Shares): Dividends are a portion of the SACCO’s profits that are distributed to members based on the number of shares they hold in the SACCO. Think of shares as your ownership stake in the cooperative
Not Guaranteed: Dividends are not guaranteed. They depend on the SACCO’s financial performance in a particular year. If the SACCO doesn’t make a profit, or the board decides to reinvest the profits, no dividends might be issued.
Determined Annually: The dividend rate is usually proposed by the management and approved by the members during the Annual General Meeting (AGM).
Based on Profitability: The amount of dividend a member receives is directly linked to the SACCO’s overall profitability. A more profitable SACCO may declare higher dividend rates.
Calculated on Share Capital: Dividends are typically calculated as a percentage of a member’s share capital held at the end of the financial year. Some SACCOs might also consider a member’s savings when calculating dividends.
Payment: Dividends can be paid out in cash, credited to the member’s savings account, or reinvested to purchase more shares, depending on the SACCO’s policy and the member’s choice.
Interests
Return on Savings/Deposits: Interest is the earnings a member receives on their savings or deposits held with the SACCO. When you save money in your SACCO account, you are essentially allowing the SACCO to use those funds. The interest is a compensation for allowing them to use your money.
More Predictable (Usually): While the interest rate on savings can change, it is usually communicated to members in advance (often at the AGM) and is a more predictable form of return compared to dividends.
Based on Savings: The amount of interest earned depends on the amount of money you have saved and the duration it has been in your account.
Calculated on Savings Balance: Interest on savings is typically calculated based on the average or closing balance of your savings account over a specific period (e.g., monthly or annually). Some SACCOs use a pro-rata method, where interest is calculated based on how long the funds were held in the account.
Payment: Interest on savings is usually credited directly to your savings account, often periodically (e.g., monthly or annually).
In essence, dividends reward you for being an owner of the USBL SACCO through your shares, while interest rewards you for saving your money with USBL SACCO. Both are important benefits of being a USBL member.
1+
Trusted Savings
3
Affordable Loan Services
365
Year-Round Support
4+
Community Focused Years
Trust and Worth
Our Clients
Empower Your Financial Journey
How We Empower Your Financial Journey
At Ushindi Biashara Sacco, we believe everyone deserves a chance to thrive. Our tailored services help you save, borrow, and invest wisely. Whether you need a loan for a dream or to save for the future, weʼre here to support you every step!
Our Tailored Services
These are some of our tailored services:
- Savings Account
- Loan Products
- Dividends and Interests
- Member Education
Empower Your Financial Journey
Transform Communities Across the Globe
Ushindi Biashara Sacco Limited has a significant potential to transform the communities around the globe, and there are numerous examples of this happening. Their impact stems from their core principles and operational models
Want To Be a Member?
Ready to Work Together? Create an account with us!
Learn More From
Frequently Asked Questions
These are the type of loans designed to finance projects that aim to improve or develop specific areas, industries, or communities.
- Member ownership and democratic governance.
- Lower loan interest rates than banks.
- Profit-sharing among members.
- Personalized service and community focus.
Becoming a member is simple. Fill out our membership form, provide valid ID, and make a minimum deposit of KES.1500 Visit our office or apply online today.