Savings and Deposits

Savings and deposit account allow people to plan their large expenditures and provide protection from uncertainty. However, servicing numerous small savings accounts is costly for financial institutions and transport to financial institutions can be expensive for people in remote areas. Instead of using formal services, people often keep their savings somewhere in their home, place money with friends or families for safekeeping, invest in livestock or goods, or join a savings group. Informal savings play an important role in many people's lives, although these channels can involve more risk than formal savings accounts.

VANWODS provides low-cost, secure saving accounts to clients to support them to form savings habits. VANWODS collects savings deposits from clients at Center meetings so that deposits are saved, rather than spent on transport and account fees.

There are two ways to save with VANWODS:
  • PLEDGE Savings-Deposit
    • Members save a minimum of VT200 in the pledge savings account each week
    • Withdrawals can be made anytime
    • This account earns interest quarterly

    • For clients who wish to take loans:
    • A percentage of their loan is deducted and deposited to this savings account
    • The pledge account balance must be maintained, to act like a guarantee to their loan

  • FLEXI Savings
    • A minimum of VT5 can be saved weekly
    • Members can withdraw anytime during their Center meeting