Member Savings: These are monthly, weekly or daily contributions of members to the GCPCUL. The idea is to build up a life time savings for rainy days. Loans are granted to members who may be in need based on their savings. A minimum savings level is determined by the Board of Directors, and reviewed from time to time. Any individual member’s savings shall not exceed 20% of the credit Union’s total savings. Interest is paid on the savings on monthly basis. The minimum savings balance per member shall not be less than GH¢100.
Member Shares: Shares form part of the equity funds of the Credit Union. Shares enable members to become co-owners of the Credit Union, and be able to participate in the democratic process. Shares help to build a sound capital base of the Credit Union. Shares serve as a risk capital – a member’s liability to the Credit Union is limited to the amount of capital he/she owns. Shares serve as funds for specific projects, and help to improve upon the liquidity situation of the Credit Union. The shares of the GCPCUL are issued at no par value, and are not traded on the Ghana Stock Exchange. Shares are not transferable. The minimum Share per member is GHS500.00. This is determined by the Board of Directors, and reviewed from time to time.
Member Fixed Deposit: Fixed Deposit Account is designed for members who save regularly, but do not have any immediate need for a loan. To compensate such net savers, members can invest their money in a fixed term fixtures for a specified period of time, say three months, six months, one year etc., for an interest rate higher than the member savings interest by 2%.
Member Sinking Fund: Sinking Fund is an annuity, providing deferred fixed income, and the amount of payout is a set sum. The annuity premiums are based on an individual plan holder. The amount is required after a certain stated period of time, say five years (meaning payments cannot be made to the plan holder until the maturity date).
A member opening the sinking Fund Account shall be required to determine the duration of the Fund, and the expected amount. Once the account is opened, a member cannot withdraw from it until maturity. Any withdrawal before maturity date shall attract a penalty as follows:
- 50% of the accrued interest where investment has not attained up to 50% of the tenor.
- 20% of the accrued interest where investment has attained more than 50% of tenor, but not up to 75%.
- 10% of the accrued interest where investment has attained 75% and above, but not 100% of the tenor.
There shall be at least one month notice of redemption to the sinking Fund Account holders and payment of interest shall cease after the redemption date.