The savings rate in a country is an important indicator of growth in the economy. However, savings remain
very low in most developing countries where poverty, high unemployment rates and other factors seem to
suppress the propensity to save. Policy-makers and researchers have therefore recognised the need to spur
savings mobilisation in developing countries with very low savings rate. This study was therefore carried out to
investigate the factors influencing savings habit of clients of the Bonzali Rural Bank in the Tolon-Kumbungu
District of the Northern Ghana using cross-sectional data from 97 randomly selected respondents. Savings
habit was analysed using probit regression. The study revealed that 32% of the respondents had got savings
while 61% saved an amount not exceeding GH¢500.00 per annum indicating that majority of the respondents
were micro-savers. The following were identified as the factors influencing the decision to save: age, gender
and marital status of the respondent. Income level and educational status were however not significant in
determining savings habit. The authors recommend that to stimulate rural savings mobilisation, there is the
need to target women who according to this study tend to save more.