People save because of many reasons such as insurance against emergency, investment, social obligations, and poor have proved that they can save and derived ingenious (often costly) mechanisms to save. This note thus focuses on voluntary savings services, as compulsory savings services have witnessed drop outs in East Africa and Bangladesh and in many cases people do not want loan every time to meet their needs. It further suggests that MFIs should conduct market research and feasibility analysis, before introducing savings services. The note also addresses the issues related to costs, HR, MIS and management systems.

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