Spend Down Slowly, Proposition 1.0

The stylized “spend down slowly” savings account, under Proposition 1.0, loses $2.79 per month, broken down below in the so-called ACTA framework2.  This loss improves as a bank journeys to Proposition 1.5 and then to Proposition 2.0, as shown by following stages via the links below.

In 2013, the Financial Services for the Poor team at the Bill and Melinda Gates Foundation published a report called Fighting Poverty through Payments, which frames a way of categorizing the components of bank account profitability.  Refer to Box C on page 14 of the GAFIS Project Report for a brief summary of this ACTA framework.

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