Fortune Sacco pays dividend (Interest on deposit and dividend on share capital) every year to all the members who had balances in deposits or share capital for the financial year ended.
Deposit earns interest on deposit on pro rata basis which means you don’t have to hold dividend for full year to earn interest. On the hand any balance on share capital as at close of financial year is entitled to dividend at rate to be recommended by the management committee. Forutne Sacco pays for dividend after approval by the Annual General Meeting which is done each year in April.
Dividend is made up to two components that interest on deposits and dividend on share capital.
Interest on deposit and shares is computed on pro rata and compound basis at a rate to be recommended by management committee and approved by Annual General Meeting (AGM).The dividends are credited to the sacco saving account.