Investment Options
Saving Group Investment Models
Below are five different investment models available for saving groups. Each includes a brief explanation and how settlement is calculated at the end of the saving cycle (Cash Out).
1. Interest Earned Shared Equally
All interest earned is combined and divided equally among all members, regardless of how much they saved.
Cash Out: Member Savings + (Total Interest ÷ Number of Members)
2. Interest Earned Paid to Individual Member
Each member retains the interest earned on their personal savings.
Cash Out: Member Savings + Member's Interest Earned
3. Interest Shared Based on Contribution Percentage
Interest is shared proportionally based on how much each member contributed to the total savings.
Cash Out: Member Savings + (Member Savings ÷ Total Savings × Total Group Interest)
4. Interest Shared Based on Saving Brackets
Admin defines different saving brackets with specific interest rates. Each member earns based on the bracket they fall into.
Cash Out: Member Savings + (Member Savings × Bracket Percentage)
5. Merry-Go-Round Model
No interest is calculated. Instead, one member receives the total contribution in each round (e.g., monthly).
Note: No profit or interest is involved. Every member gets the total group savings once.
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