The growth of any economy depends on capital accumulation, which in turn depends on investment and an equivalent amount of savings to match it. Two of the most important issues in development economics and for developing countries are how to stimulate the investment and increase the level of saving to fund it. It is in this line that UMWALIMU SACCO was established with the initiative of his Excellence President Paul Kagame to cater for the welfare of teachers. Umwalimu SACCO was created in 2006 and it was licensed in 2008 by National Bank of Rwanda (BNR) to operate as a Financial Institution offering different financial services to its members. Today it has 30 branches, one in each district, and has grown in terms of equity and members with a total number of almost 78,333 active accounts. Members have easy access on their accounts at all Branches of Umwalimu SACCO and Umurenge SACCOs through an interface technology. Umwalimu SACCO’s saving culture has been a tremendous success in addressing teachers’ financial needs and has catapulted teachers out of poverty. Umwalimu SACCO engages in two principal activities which include managing members’ savings got from their monthly deductions of 5% of the member’s net salary through a check-off system. These savings are made as permanent savings/Compulsory savings and serve as guaranty when giving loans to members. They are remunerated at 4% every year. Umwalimu SACCO has also a free savings account through which all the money the member have transit before they are channeled to other subaccounts according to the client willing. In order to encourage teachers to save for their future, Umwalimu SACCO has developed voluntary saving products made under contractual terms and conditions. They include the following savings types: School fees saving account: It has a Competitive interest rate depending to the amount and the period saved, allow members planning to save for their children’s school fees and themselves; then, members are able to pay school fees on time and preserve their dignity. Home furniture saving account: It has a competitive interest rate depending on the amount and period saved, easing the start of the home life. Allow members to access to quality equipment which can serve as loan collateral. Children saving account: Umwalimu SACCO offers savings account designed specifically for children development. The parents may begin to save money for their children using this type of account for the secure future of their children. Fixed/term deposit accounts: It has an interesting and competitive interest rate depending on the amount and period saved. It increases wealth with high return to the members. Through the mobilization of those different Savings product from members, Umwalimu SACCO grants different types of loans to its members. Other services offered by UMWALIMU SACCO to its members are trainings on Business Management game, project elaboration, basic front office banking services and so forth.
