ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Newsbytes

Boston Fed: Prepaid Cards Could Be Savings Vehicle

September 8, 2015
Reading Time: 1 min read

General-purpose reloadable prepaid cards are emerging as a savings vehicle for low-income individuals, according to a new article from the Federal Reserve Bank of Boston’s Communities and Banking magazine.

“GPR card companies that offer savings pockets have indicated that they are seeing consumers utilize the features to set money aside, but for extremely short periods of time—weeks, not months,” the article said. “[C]onsumers are not going to be suddenly saving large sums simply because a savings pocket has been added to a card. However, saving even a small amount of money, and thereby changing savings behavior, can begin a process toward financial stability with the potential for long-lasting positive effects.”

The article cited results from a pilot study called “Rainy Day Reserve,” which offered a free, non-interest-bearing savings option to prepaid card holders that included automated savings options and reminders of savings goals before making withdrawals. According to the study, Rainy Day Reserve participants loaded more money onto their cards in more transactions and saved 10 percent of loaded funds — versus 1 percent for non-participants.

The article noted that prepaid card load volume is growing rapidly, doubling from 2009 to 2012, and that households with income of less than $25,000 are two-and-a-half times more likely to own a prepaid card than households with income of $75,000-$100,000.

ADVERTISEMENT
Tags: Prepaid cards
ShareTweetPin

Related Posts

CFPB warns against certain terms in financial service contracts

CFPB withdraws proposed ban on certain contract language for financial products

Compliance and Risk
May 15, 2025

The CFPB has withdrawn a proposed rule to prohibit contractual provisions in agreements for consumer financial products or services that waive “substantive” consumer legal rights and protections.

Mortgage rates fall

Mortgage rates rise

Economy
May 15, 2025

The rate for a 30-year fixed-rate mortgage was 6.81% this week. The rate for a 15-year fixed-rate mortgage was 5.92%.

Survey: Bank customers say youth need financial education

Survey: Most Americans want high schools to offer financial education

Financial Education
May 15, 2025

More than four in five Americans believe that financial education should be part of high school curricula, according to a recent survey. Twenty-seven states currently require such courses.

CFPB launches ‘tip line’ to report on bureau employees

CFPB withdraws proposals on data brokers, digital payment mechanisms

Newsbytes
May 15, 2025

The CFPB has withdrawn two proposed rules concerning data brokers and digital payment mechanisms. Both were proposed after the 2024 elections.

Producer price index increased 0.5% in April

Producer price index decreased 0.5% in April

Economy
May 15, 2025

The Producer Price Index decreased 0.5% in April from the previous month, the Labor Department reported.

Home builder confidence unchanged in April

Home builder confidence declines in May

Economy
May 15, 2025

Builder confidence in the market for single-family homes in May was 34, down from 40 the previous month, according to the NAHB/Wells Fargo Housing Market Index.

NEWSBYTES

CFPB withdraws proposed ban on certain contract language for financial products

May 15, 2025

Mortgage rates rise

May 15, 2025

Survey: Most Americans want high schools to offer financial education

May 15, 2025

SPONSORED CONTENT

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025
AI for Banks: A Starter Guide for Community and Regional Institutions

AI for Banks: A Starter Guide for Community and Regional Institutions

March 1, 2025

PODCASTS

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025

How a Georgia community bank supports government-guaranteed lending nationwide

May 1, 2025

Podcast: Quantum computing’s shakeup in payments, cybersecurity

April 24, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.