Female Empowerment: Impact of a Commitment Savings Product in the Philippines



month when large expenditures were expected, e.g. the beginning of school, Christmas, a
particular celebration, or when business needs arose. Alternatively, clients could set a goal
amount and only have access to the funds once that goal was reached (e.g., saving a quantity of
money known to be needed for a new roof). The clients had complete flexibility to choose which
of these restrictions they would like on their account. Once the client had made the decision they
could neither change it, nor could they withdraw from the account until they met their chosen
goal amount or date.6 After the goal is reached, the SEED client, not his or her spouse, could
withdraw the funds. All clients, regardless of the type of restriction they chose, were encouraged
to set a specific savings goal as the purpose of their SEED savings account. SEED marketers
insisted that the client herself or himself, and not another household member, set the goal.7

The savings goal was written on the SEED form used to open the account, as well as on a
“Commitment Savings Certificate” that was given to the client to keep. Forty-eight percent of
clients reported wanting to save for a celebration, such as Christmas, birthday or fiesta.8 Twenty-
one percent of clients chose to save for tuition and education expenses, while 20 percent of clients
chose business and home investments as their specific goals.

The bank offered each client a locked box (called a “ganansiya” box) for a small fee in order
to encourage deposits. This locked box is similar to a piggy bank: it has a small opening to
deposit money and a lock to prevent the client from opening it. In our setup, only the bank, and

6Exceptions are allowed for medical emergency, in which case a hospital bill is required, for death in the
family, requiring a death certificate, or relocating outside the bank’s geographic area, requiring
documentation from the area government official. The clients who signed up for the SEED product signed
a contract with the bank agreeing to these strict requirements. After six months of the project, no instances
occurred of someone exercising these options. For the amount-based goals, the money remains in the
account until either the goal is reached or the funds withdrawn or the funds are requested under an
emergency.

7 SEED marketers reported instances of household visits in which the husband tried to influence the goal-
setting process. Typically the marketers then asked that only the wife to give her goal and this was
recorded, but at no point did the marketer make an issue out of the goal setting process. Green Bank
prohibits spouses from being able to withdraw from each others’ accounts, unless the account was
explicitly opened as a joint account. No SEED accounts were opened as joint accounts.

8Fiestas are large local celebrations that happen at different dates during the year for each barangay
(smallest political unit & defined community, on average containing 1000 individuals) in this region.
Families are expected to host large parties, with substantial food, when it is their barangay’s fiesta date.
Families often pay for this annual party through loans from local high-interest-rate money-lenders.



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