not the client, had a key to open the lock. Thus, in order to make a deposit, clients need to bring
the box to the bank periodically. Out of the 202 clients who opened accounts, 167 opted for this
box. This feature can be thought of as a mental account with a small, physical barrier; the box is
merely a mechanism that provides individuals a way to save their small change. Individuals put
loose change or small bills on a daily basis, hence making “deposits” that normally would be too
small to warrant a trip to the bank. These small daily “deposits” keep cash out of one’s (and
others’) pocket; eventually, once enough money accumulates in the box, the client deposits the
funds at the bank. The barrier, however, is largely psychological; the box is easy to break and
hence is a weak physical commitment at best.9
Other than providing a possible commitment savings device, no further benefit accrued to
individuals with this account. The interest rate paid on the SEED account was identical to the
interest paid on a normal savings account (4 percent per annum).
The Experimental Design and Data Collection
Our sample for the field experiment consists of 4001 adult Green Bank clients who have
savings accounts in one of two bank branches in the greater Butuan City area, and who have
identifiable addresses. We randomly chose 3125 out of 4001 bank clients to interview for our
baseline survey. We then performed a second randomization to assign these individuals to three
groups: commitment-treatment (T), marketing-treatment (M), and control (C) groups. One-half
the sample was randomly assigned to T, and a quarter of the sample each were randomly assigned
to groups M and C. We verified at the time of the randomization that the three groups were not
statistically different in terms of preexisting financial and demographic data. Of the 3125, 1776
were located by the survey team and then completed a survey. See Ashraf, Karlan and Yin
9 To facilitate deposits, clients also were offered automatic transfers from a primary checking or savings
account into the SEED account. This feature was not popular. Many clients reported not using their
checking or savings account regularly enough for this option to be meaningful. Even though preliminary
focus groups indicated demand for this feature, only 2 out of the 202 clients opted for automated transfers.