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Ugandans Advised to Save With Only Recognised Financial Institutions

Compared to other neighbouring countries like Kenya and Rwanda, Uganda’s’ saving culture is relatively poor, according to Bank of Uganda Officials.

The main reason that most Ugandans give is because they do not earn enough money to cater for their everyday needs and put a side a surplus as savings.

Others say they do not know how to secure saving with financial institutions is, so they prefer to keep their money at home or use it to buy land or start up a business.

It is upon this background that BoU decided to organise a savings camp at the city square Kampala with the aim of engaging and advising the general public about the importance of the saving.

According to James Ssettimba, the deputy director Financial Inclusion Division BoU; saving plays an important role in wealth creation and growing one’s worth without having to rely on loan sharks.

“Putting aside money for future use is the only guarantee that one could have to meet their financial needs in future without difficult. The little money saved today could help you in case you receive any emergency in future that needs immediate money. Then one doesn’t need to run to loan sharks to get emergency at very unfair terms,” Ssettimba said.

He, however, noted that it’s very important for Ugandans to be careful with who and where they save money.

“It is important that one saves money in a secure institution that is regulated by the central government so that incase the institution fails, their savings are secure and they do not have to lose out,” he noted.

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“When you save with a bank or any institution that is registered with us, in case it is dissolved due to financial challenges, your savings are still accessible and secure at all times. That is why we urge Ugandans to resist from saving with small village groups that are not registered because in case of loss, there is no law that guarantees that your money will be secured,” he concluded.

This is the second time that the central bank is organising such a camp, having organised one last year.

The savings camp is part of the World Savings Day celebrations that happen every 31th October of the year.

A number of commercial banks have set up stales to educate, interact and help their customers to open up savings accounts but also answer quarries about their savings.

Also BoU will be holding free training for all attendees about budgeting, savings, planning for old age as well as give information about agency banking and how it’s used.

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