How to Apply as a Member of Barangka Credit Cooperative (BCC)

Have you ever considered investing in a cooperative?

Or are you even aware that you can invest your money in a coop?

Investing in a Coop is not new to me.

Before I opened an account with Barangka Credit Cooperative last year, I was previously a member of two Coops.

The first one was with San Felipe Neri Savings and Credit Cooperative in Mandaluyong.

I became a member in 2008 when my college friend who used to work in that coop encouraged me to open a savings account.

The second one was with Ayala Coop which was offered to me when I was still employed in my previous company in 2012.

Even though my membership with these Coops were short-lived, I’m happy I learned something about saving and investing.

In fact, that was my first exposure to the world of investing.

And I never stopped learning about personal finance since then.

What is a Cooperative?

From the word itself, cooperative signifies cooperation among members towards a common goal depending on the mission or vision of the coop.

A cooperative is an autonomous association of people who unite voluntarily to meet their common, economic, social and cultural needs and aspirations through a jointly-owned and a democratically-managed enterprise.

Cooperatives in the Philippines have been existing since 1914 and they are governed by the law RA 9520 or the Cooperative Code of the Philippines.

It is also regulated by the Cooperative Development Authority (CDA).

How I Became a Member of BCC

I signed up as a regular member of Barangka Credit Cooperative (BCC) on October 1, 2019.

When they opened a satellite branch within our area a few years ago, I got interested to be a member.

It took a long while before I signed up because I couldn’t find the time to comply with their requirements.

Finally, last year, I committed to attend the 4-hour Pre-membership seminar on September 28, 2019 at their main office in Barangka, Marikina.

I also invited my sister-in-law to attend the seminar with me.

We learned a lot about Barangka Credit Cooperative and how investing in a coop works.

We got our seminar certificate and we were advised to sign up as members at the satellite branch within our area of residence for easier and faster transactions.

Aside from me and my sister-in-law, I also encouraged our kasambahay to open an account after attending the seminar.

I also opened a kiddie savings account for my daughter, Macey.

We have been consistently saving a portion of our income at the coop since then.

I was actually excited to attend BCC’s Annual General Assembly that was supposed to be held on March 29, 2020, but it was postponed because of the Enhanced Community Quarantine due to the Covid-19 outbreak.

How to be a Member of Barangka Credit Cooperative

Barangka Credit Cooperative or BCC is a primary multi-purpose cooperative duly registered under the Cooperative Development Authority with registration number of 9520-16012864.

To be a member or co-owner of BCC:

• You must be residing or working within the areas of Marikina City, Antipolo City, District 3  and 4 of Quezon City, San Mateo, Montalban and Cainta, Rizal.
• You must also attend the Pre-Membership Education Seminar (PMES) scheduled every Saturday from 8:00 am to 12:00 noon in BCC Main Office.

If you prefer to attend the seminar in another branch or satellite, you may call or inquire first to know the schedule of the seminar if they have any.

• To fully understand the purpose of a Cooperative, its operations, principles, core values and best practices.
• To learn the rights and privileges of being a co-owner or member.

I’m not sure if this is the Kiddie and Special Savers Club membership that I opened for Macey.

Each member contributes equity capital and shares in the control of the cooperative on the basis of one-member, one-vote principle and not in proportion to his or her equity contribution.

What are the advantages of being a member of BCC

• Free Life Share Protection Plan up to ₱300,000.00
• Earn dividends and receive patronage refund.
• Earn higher yield on savings and time deposit.
• No withholding tax in all deposits.
• Avail loan products and services.
• Free medical consultation and discount on other medical services.
• Discount on facilities.
• Opportunities to be exposed in Local & International Cooperative Affairs.
• Receive incentives / rewards.

BCC’s Share Capital earns 4% to 6% per annum based on Historical Rate.

Why invest in coops?

The primary objective of every cooperative is to help improve the quality of life of its members.

Profits are used to provide products and services to clients and are equitably distributed among the members.

Why do cooperatives have membership-investment?

Like any business, a cooperative needs to have adequate funds to pay bills, make investments in assets and have reserves to achieve it’s mission and vision.

Members are owners at risk and not just users. The dividing of ownership equity among many members makes it easier and less risky to finance the cooperative than if only one or a few members tried to do it on their own.

So why invest in a coop?

1. It can give consistent, regular and generous cash dividend or interest payments from the various investment or businesses of cooperatives.
2. Personal income derived from coops are tax exempt compared to 5-20% tax rate on traditional investments.
3. Your investment in a cooperative contributes to local economic development through its businesses and investments.
4. Cooperatives prioritize providing products and services to its members who are mostly part of the marginalized sectors – farmers, fisherfolks, indigents and micro-enterprises.

Is it risky to invest in a coop?

Like any other investment, there are risks involved when investing in coops whether as a member or starting a cooperative yourself from scratch.

So it is necessary to research, conduct due diligence and always check with the Cooperative Development Authority (CDA).

In case you’re wondering…

How much did I earn from investing in San Felipe Neri Coop?

When I opened an account with San Felipe Neri Coop in May 2008, I invested ₱20,000 which I earned from work for my Yearly Performance Incentive.

My goal was to invest in the coop every quarter. However, in July of that same year, only two months after I opened the account, I withdrew all my investment due to an urgent family need.

In two months time, my ₱20,000 investment in the coop earned an interest of ₱74.52.

How much did I earn from investing in Ayala Coop?

With Ayala Coop, I invested a total of ₱10,000 from August 2012 to March 2014.

I cancelled my membership in April 2014 when I resigned from work.

A month later, I received my total dividend of ₱477.58.

READ: My Ayala Coop Membership Review

How much did I earn from investing in Barangka Credit Coop?

I was supposed to receive my first dividend during the General Assembly but it was postponed due to the ECQ.

I’ll let you know how much I have invested so far and how much dividend I earned when the General Assembly pushes through.

Conclusion

There are many ways to save and invest our hard-earned money.

Investing in a Coop is just one of them.

Even if it’s not the most lucrative way to grow your money, it’s a good way to start the habit of saving.

As you continue to save and invest, you’ll discover other investment vehicles that would allow you to diversify your investments and help you achieve your financial goals easier and faster.

So if you don’t know where to invest yet, you may want to start out by investing in a coop.

Click here to see the complete list of Cooperatives in the Philippines.

Source: BCC, PhilStar

Disclaimer: The Pinay Investor is a member of a coop but this post should not be construed as investment, tax, or legal advice. This is for informational purposes only. Consult your own legal/accounting/tax/financial professionals before investing or engaging in any transaction.