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Sacco FOSA or Bank Account
slowsure
#1 Posted : Thursday, April 04, 2019 7:28:09 PM
Rank: Hello


Joined: 4/4/2019
Posts: 1
Hi Wazuans,

For a young person just starting out which is better to operate. A FOSA account in a Sacco where your salary lands and then you apportion a bit for Sacco shares then use the rest as savings and kawaida expenses. Then you can grow both slowly over time.

Or use a bank salary account and apportion from there.

Are there any benefits I would be missing out from not having a bank account considering Sacco fosas' have this Sacco link atm cards you can get cash anywhere. Plus fosa loans are easier to get than banks which I hear are shying away from lending to people and preferring government bonds and such. or there is something I'm not seeing?

Any advice for a young guy on his first job is welcome.
muganda
#2 Posted : Friday, April 05, 2019 11:05:01 AM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905
Your arguments for Sacco FOSA seem valid; determinant is which SACCO. Restrict yourself to the top 5 most solid Saccos in the country (do not compromise on the standard).

However a Sacco FOSA cannot approach the security, options, growth that a bank account would give in time. So in your second/third job, the best option would be a cheap tier 1 bank then redirect whatever you require to Sacco.
madhaquer
#3 Posted : Friday, April 05, 2019 4:47:08 PM
Rank: Member


Joined: 11/10/2010
Posts: 281
Location: Nairobi
A FOSA account is not considered a bank account.
Recently a friend could not get a visa to SA as the FOSA account was not recognized.

I suggest you open a very basic bank account and have a monthly standing order to your sacco.
MugundaMan
#4 Posted : Friday, April 05, 2019 5:18:07 PM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
slowsure wrote:
Hi Wazuans,

For a young person just starting out which is better to operate. A FOSA account in a Sacco where your salary lands and then you apportion a bit for Sacco shares then use the rest as savings and kawaida expenses. Then you can grow both slowly over time.

Or use a bank salary account and apportion from there.

Are there any benefits I would be missing out from not having a bank account considering Sacco fosas' have this Sacco link atm cards you can get cash anywhere. Plus fosa loans are easier to get than banks which I hear are shying away from lending to people and preferring government bonds and such. or there is something I'm not seeing?

Any advice for a young guy on his first job is welcome.


None of the above.
Be smart, young man. Leave as little money as possible in any account that pays you zero % interest or -even worse - charges you a monthly fee. And stop thinking loans because loan mentality will kill you my mbradzee.
Get a bank account that charges no fees. As soon as your salary hits it and all bills are paid, huyooo save aggressively by extracting it to a fixed deposit account or worst case scenario M-shwari lock savings which pays you well over 5% and gives you 100% accessibility within 1 or 2 days. Live well below your means until you can afford to invest in DC (Dustbowl County) after a couple of years of saving and the rest will be history. Take this advice or leave it but ten years from now if you leave it you will gnash teeth in bitterness at having not listened to me. Good luck!
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