This research examines whether a programmed savings initiative can help individuals save more and, in particular, switch from informal savings vehicles to formal sector methods (e.g., a bank account). In conjunction with Caja Municipal de Ica (CMI), IPA examines various methods of product design, beyond the financial incentive, of encouraging clients to complete their savings commitment.

The study follows the approximately 5000 clients in Ica and Ayacucho Peru who sign up for a programmed savings account with CMI. Clients are randomized into various groups to receive a combination of incentives to complete their savings commitments. The incentives, which are designed to keep savings goals at the forefront of their minds, include reminder letters, motivational gifts (puzzles or photos with savings goals - a puzzle piece is distributed at every deposit), and positive or negative messages on deposit receipts and reminder letters. The study measures which of these incentives most effectively encourages clients to complete their savings commitments.