(a) What are Thrift Societies? (b) Describe five services rendered by Thrift Societies to their members.

Answer Details

(a) What are Thrift Societies?

Thrift societies are voluntary associations of people who come together to save money regularly out of their incomes so as to accumulate funds from which members can borrow, or which they can withdraw to meet future needs. They encourage the habit of saving and provide members with easy access to credit at low cost. Examples include cooperative thrift and credit societies and the informal 'esusu' or 'ajo' savings clubs.

(b) Five services rendered by Thrift Societies to their members

1. Encourage savings: They promote the habit of regular saving among members, helping them to set money aside from their incomes.
2. Grant loans: They give loans to members at low rates of interest to meet personal, family or business needs.
3. Safe keeping of funds: They provide a safe place where members' savings are kept until needed.
4. Financial advice and education: They advise and educate members on wise spending, saving and investment of their money.
5. Payment of dividends and welfare help: Surplus is shared among members as dividends, and some societies give welfare assistance in times of need such as sickness or bereavement.