Microsavings

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.

RELATED TERMS
  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. Call Deposit Account

    A bank account for investment funds that offers the advantages ...
  4. Linked Savings Account

    Any type of bank savings account that is linked by account number ...
  5. Branch Accounting

    An accounting system in which separate accounts are maintained ...
  6. Super NOW Account

    An account created in 1982 that offers a higher interest rate ...
Related Articles
  1. Term

    Who Benefits from Microfinance?

    Microfinance describes banking services provided to low-income people or groups. Specific services offered by microfinance institutions include microloans, micro-savings and micro-insurance products.
  2. Insurance

    An Introduction to Microfinance

    Is microfinance a way to help the poor, or will it just make them poorer?
  3. Savings

    4 Savings Accounts for Investors

    Curious about the best saving accounts and which ones suit investors?
  4. Savings

    Banking: Savings Accounts 101

    By Amy FontinelleAfter checking accounts, the next biggest thing most people think about when they think about banking is savings accounts. Having a savings account somewhere to store extra cash ...
  5. Entrepreneurship

    How Microfinance and Investment Banking Compare

    Investment banks and microfinance institutions (MFIs) provide similar services, but the clients they serve and the incentives that motivate them are very different.
  6. Savings

    Find the Best Savings Account Rates

    You know how to spot the highest interest rate, but how do you really get the best deal on savings accounts?
  7. Savings

    The 5 Best Alternatives to Bank Saving Accounts

    Find out about some of the most profitable available alternatives to depositing money in a traditional bank passbook savings account.
  8. Entrepreneurship

    The Who, What And How Of Microfinance

    Microfinancing allows people in poverty to safely take on reasonable small business loans in an ethical manner.
  9. Entrepreneurship

    Microfinance & Macrofinance: What's The Difference?

    What are the key differences between microfinance and macrofinance? Investopedia takes a look.
  10. Stock Analysis

    Big Banks Move Into Microfinance-For-Profit

    Several corporate giants have begun partnering with NGOs to hand out $50-$100 loans to the world's poor. Is this altruism or exploitation?
RELATED FAQS
  1. What are the requirements for opening a savings account in the United States?

    Understand what information and documentation is necessary to open a savings account within the United States, and learn ... Read Answer >>
  2. Why would you keep funds in a money market account and not a savings account?

    Read about the differences between money market accounts and savings accounts, and see why a depositor would elect a money ... Read Answer >>
  3. What determines the interest rate in my money market account?

    Placing funds in a money market account may provide a higher interest rate than a savings account due to the underlying securities ... Read Answer >>
  4. What economic factors affect savings account rates?

    Find out how supply, demand and central bank policy all affect savings account rates offered by banks for extra deposits ... Read Answer >>
  5. How is a savings account taxed?

    Read about the taxation of interest income on personal savings accounts, how the tax is calculated, and how to report savings ... Read Answer >>
  6. How much money should I have in a savings account?

    Read a brief outline of the purpose of savings accounts, emergency funds and how to determine how much money to store for ... Read Answer >>
Hot Definitions
  1. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  3. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center