Many people express a desire to save more in the future, but when the time comes, they find it difficult to do so. Financial institutions have begun to design savings products to overcome some of the obstacles that savers face. A programmed savings account with incentives to make deposits on time is one example. Clients with these accounts commit to making regular deposits for a predetermined length of time and often receive more interest on their savings than they would in a traditional savings account as an incentive to make their regular deposits. Despite a clear desire to save, as evidenced by their voluntary decisions to open accounts, and a monetary incentive to make their regular deposits on time, over 40% fail to make at least one of their deposits on time.

In Bolivia, IPA worked with Ecofuturo to measure the effectiveness of sending text message reminders to its programmed savings clients. The evaluation focused on a specific programmed savings account that is similar to a Christmas Savings Club, designed to end in December to coincide with the expenses associated with year-end festivities. The text message reminders provided an opportunity to explore what types of messages are most effective at motivating clients to follow through on their desires to save. The messages focused on external incentives, a higher interest rate & free life insurance premiums for those who deposit on time, and were framed as either gains or losses.

Half of the savings clients with a cell phone number listed in the database were randomly assigned to receive monthly text message reminders. This treatment group was further divided into two sub treatment groups that received one of the distinct messages. Half of the people who received messages in 2008 were in the control group, so that we could measure the impact of receiving messages one year but not the next.