By David Liechty
JAK Medlemsbank is a member-owned bank in Skovde, Sweden that has operated an interest-free savings and loan system since 1970.
Members accumulate points monthly based on their savings deposits, and after six months as members, they may borrow money interest-free against these points. Members may also borrow funds in excess of the number of points they have accumulated, in which case they deposit “post-savings” each month in addition to the normal loan payments, to make up the point deficit.
Once a loan is paid off and the point balance is achieved, the member may withdraw the deposited “post-savings” or continue to accumulate points toward future loans. Points can also be accumulated and then transferred to friends, relatives, or businesses in the community.
The bank charges a small percentage to cover operating costs. It has been called the safest bank in Sweden.
JAK stands for Jord Arbete Kapital in Swedish, meaning “Land Labor Capital.” The bank traces its philosophical and operational roots back to the Jord Arbejde Kapital co-operative system in Denmark, which ran similar banking experiments during the Great Depression and the 1940s.
