I'm talking about Kiva.org the non profit entity that lets you become a microlender to entrepreneurs in developing countries.
They are a channel so your dollars can be put to work helping an entrepreneur build their business. Typically these are small loans under $2000 that may mean all the difference in the world to someone who'll never have access to a credit card or other source of credit to expand a business.
So how could this be someone's best savings account option?
As I've said elsewhere, the best savings account is one where you'll get your money back. Very very few of these loans default. If you lend a small amount for each entrepreneur, say $25, there's a very small risk.
Also, this may be be your best savings account because you can't touch the money you put in until the whole loan is paid back. There's no temptation to dip into this fund.
Unlike other savings accounts though, this one may give you a particularly good feeling because you got to help someone improve their life.
Now, it's not the best savings account when it comes to getting a return on your money. There's no taxes but your money will lose value due to inflation.
But if you think of it as money you're giving away to help people and then, years later, when you need it in an emergency it becomes available, it might be the best savings account you could ever get because - there's money there!
I hope you'll forgive this tongue in cheek plug for Kiva.org.
I'd rather have $10,000 to put into Kiva.org loas today than $10,000 to put into a 401K at any given moment.
But someday, if I need it, that $10,000 will be there after helping lots of people and being "recycled" many times.
