Members often say “my shares” when referring to several different balances. That can cause costly misunderstandings. Share capital is equity. Non-withdrawable deposits are member deposits that ordinarily remain in the SACCO during membership. Withdrawable savings are accounts whose access follows their product terms.
| Feature | Share capital | Non-withdrawable deposits | Withdrawable savings |
|---|---|---|---|
| Main character | Member equity | Member deposit linked to membership | Savings or transactional deposit |
| Typical return | Dividend if declared | Interest or rebate if declared under policy | Interest if the product provides it |
| Access | Usually transferred rather than refunded | Normally refunded on exit after obligations are cleared | Withdrawn under account terms |
| Loan relationship | Capital contribution; regulations restrict pledging shares as loan security | May be used as collateral against borrowing | Depends on product and SACCO terms |
| Governing detail | Law, regulations and by-laws | Law, regulations, by-laws and account terms | Account terms and applicable regulation |
Why the distinction matters
It affects what you can withdraw, what may remain tied to a loan or guarantee, how returns are calculated and what happens when you leave. It also affects how you read a dividend notice: a dividend on share capital and interest on deposits may use different bases and rates.
How to verify your balances
- Request a statement that identifies every balance by account or product.
- Match each balance to the by-laws and product terms.
- Ask how each balance earns a return and what qualifying date or average is used.
- Confirm exit and transfer treatment in writing.
- Resolve inconsistent labels before making a loan or withdrawal decision.
Primary sources
These links support the important legal or regulatory points in this guide. Verify that you are reading the current version.