Member share capital, savings, and term deposits

SmartERP SACCO Operations manages the foundational deposit liabilities that fund cooperative lending programs.

Member share capital and membership fees#

Upon joining the cooperative, members purchase qualifying share capital:

• Minimum Qualifying Shares: Enforced by membership policy (e.g., 5 shares at 1,000 ETB = 5,000 ETB minimum capital).
• Dividend Distribution: Annual dividend calculation and distribution based on net cooperative surplus and member shareholding balance.
• Non-Withdrawable Capital: Member share capital remains locked until formal membership termination and clearance.

Regular savings and passbook accounting#

• Mandatory Regular Savings: Automated monthly deduction requirements (e.g., minimum 500 ETB/month) that build loan collateral and eligibility multipliers.
• Voluntary Demand Deposits: Flexible savings accounts allowing cash deposits and withdrawals at the cooperative teller window.
• Automated Interest Accrual: Computes monthly compound or simple interest based on the minimum monthly balance, posting interest directly to member ledgers.

Term deposit contracts and simulation wizard#

For members depositing fixed-term investment capital (e.g., 6 months, 12 months, 24 months):

flowchart LR
    A[Member Deposit Request] --> B[Term Deposit Stepper Wizard]
    B --> C[Select Principal: 100,000 ETB & Tenor: 12 Months]
    C --> D[FLEXCUBE Interest Engine: 12% Annual Rate]
    D --> E[Simulate: Monthly Payout vs Maturity Capitalization]
    E --> F[Generate Deposit Certificate & Accounting Entry]

• Early Liquidation Penalty: Automatically calculates early withdrawal penalty discounts if a member redeems a term deposit prior to the contractual maturity date.