DEFINITION of 'Microsavings'

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.

BREAKING DOWN 'Microsavings'

Microsavings plans are usually offered in developing countries as a way to encourage saving for education or other future investment. People who invest in these plans are better prepared to cope with any unforeseen expenses, which would usually harm lower income individuals.

  1. Microfinance

    A type of banking service that is provided to unemployed or low-income ...
  2. Savings Account

    A deposit account held at a bank or other financial institution ...
  3. Savings

    According to Keynesian economics, the amount left over when the ...
  4. Microinsurance

    Insurance products that offer coverage to low-income households. ...
  5. Socially Responsible Investment ...

    An investment that is considered socially responsible because ...
  6. Microcredit

    An extremely small loan given to impoverished people to help ...
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