Microsavings

Categories: Banking, Tech

Microsavings: like savings, but...micro.

It's saving up small amounts of money over time as a way to reserve money for when you need it, like for an emergency.

As in other areas of microfinance, microsavings is mainly targeted at consumers in lower GDP per capita countries. Since microsavings accounts are easy-going with minimums and fees, they encourage saving, no matter how minimal. Some of these microsavings account will automatically save the extra change to the dollar on every purchase (like saving 21 cents automatically after buying something for $1.79).

If you look for microsavings accounts at the banks you know, you probably won’t find them. That’s because they’re more of a philanthropic, development economics thing than they are a way for banks to make money, so they’re offered by alternative financial institutions.

Microsave...one cent at a time.

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