Additionally, many prepaid cards offer savings programs, which help consumers save money. As noted in New America Foundation's policy paper, Beyond Barriers: Designing Savings Accounts for Lower-Income Consumers, "consumers using the savings pocket of a prepaid card reported that customers who set up defaults or automatic transfers into their savings accounts had more success accumulating savings." The policy paper further recommended "to help bridge the gap between where small-dollar savings products are offered and where consumers are located . . . the small-dollar savings products could be sold at retail outlets through branchless banking or as a reloadable prepaid product."

Original article