products and the operational capacity to manage them, however, it stands to gain in terms of expanding its financial services while building a more stable and diverse capital base from which to fund its
loan portfolio. This article describes the different types of savings account that may be offered, and how each account may benefit the MFI and its clients. It outlines how NGOs, converted banks and credit
unions approach savings, and the primary reasons MFIs and their clients are becoming more interested in savings products. Finally the risks are described that must be managed by MFIs offering savings products.
If managed well, savings can offer MFIs a chance to expand their operations, improve their reputations among the target clientele and increase their returns.