CHESAPEAKE, Va. (7/6/15)--ABNB FCU has wasted no time rolling out a prize-linked savings (PLS) program for its members.
The Chesapeake, Va.-based credit union is the first cooperatively owned financial institution in Virginia to offer the product since it was authorized in the state in March.
PLS accounts encourage members to save by offering them a chance to win thousands of dollars in cash each time they put away a set amount of money into their savings.
At ABNB, using the Save to Win format that’s become a popular PLS program, members can win monthly and quarterly cash prizes throughout the year.
The monthly prizes range from $25 to $100, and the quarterly prizes range from $500 to $5,000. Participants can make 30 entries per quarter.
In the end, not all participating members win the cash prizes, but 100% will end up with a healthier savings accounts and improved savings habits.
“(Prize-linked savings) aligns perfectly with our mission as a credit union to be our members’ most trusted financial partner,” said Carl Ratcliff, ABNB FCU president/CEO. “This product gives us the opportunity to incent our members just for saving their money; it’s a win-win for our members.”
Including Virginia, 14 states expressly permit PLS accounts, and PLS legislation is pending in New Jersey, Pennsylvania, Illinois, Massachusetts and South Carolina.