A branch of microfinance, consisting of a small deposit account offered to lower income families or individuals as an incentive to store funds for future use. Microsavings accounts work similar to a normal savings account, however, are designed around smaller amounts of money. The minimum balance requirements are often waived, or very low, allowing users to save small amounts of money and not be charged for the service.
- Multiple programs promote microsavings for children and youth throughout the developing world today.
- AFI utilizes a peer-to-peer learning model to connect, encourage and enable financial policymakers to interact and exchange knowledge on policy initiatives such as consumer protection, mobile financial services, financial integrity, agent banking, formalizing microsavings, data and measurement, and general financial inclusion.
- Due to the unbalanced emphasis on credit at the expense of microsavings, as well as a desire to link Western investors to the sector, United Prosperity uses a variation on the usual microlending model; with United Prosperity the micro-lender provides a guarantee to a local bank which then lends back double that amount to the micro-entrepreneur.