Savings cooperatives are member-owned financial institutions that provide savings accounts and loans to their members. They operate on the principle of mutual assistance, where profits are shared among members rather than distributed to external shareholders. This structure often allows for lower fees and better interest rates compared to traditional banks. Members of savings cooperatives typically have a common bond, such as living in the same community or working for the same employer. These cooperatives are often regulated by government agencies to ensure safety and soundness, similar to how credit unions operate.