The deposit services of the cooperative called member-savings operations (MSO) was formally launched last November 10, 2016, with 28 members depositing a total of 482,000. MMK on the first day. The deposit services allowed members to avail of safekeeping services for cash, and earn a competitive rate of 8.25% a year. Members can deposit and withdraw during business hours just like formal financial intermediaries.
To motivate members to save, the Savings Mobilization Campaign 2016 was implemented as an incentive program. For a deposit of 20,000. MMK, a depositor will get a ticket that will be raffled off in January 2017 with the following prizes: first prize – Mobile phone; second prize – TV; and, third prize – 10 stock certificates. Consolation prizes were also offered which includes one sack of rice for every 1 million MMK deposit and one t-shirt for the first 50 depositors.
Participants in the program have the option to continue saving in their respective savings groups, where they can borrow funds when there are urgent needs; or they can save with the cooperative where they can also avail of the credit services for working capital for crop production or expansion of their enterprises.
The additional funds that will be generated from the savings deposits of members will be used to finance the credit services of the cooperative.