TIGARD, Ore., and INDIANAPOLIS (3/31/16)--After gaining key legislative wins in 2015, in April credit unions in Oregon and Indiana will launch Save to Win, the multistate prize-linked savings (PLS) program, just in time for National Financial Literacy Month.
The accounts, designed to encourage savings, work by offering members entries into cash-prize drawings each time they deposit a set amount of money into a savings account.
The credit unions in Oregon that will offer the program are:
“As Oregonians, we all have the opportunity to improve the health of our household finances every day. Prize-linked savings programs, like credit unions’ Save to Win program, catalyze that all-important first step toward savings for many,” said Troy Stang, president/CEO of the Northwest Credit Union Association. “It demystifies savings in a tangible way while encouraging longer-term financial behaviors, helping families build financial strength.”
Participating Indiana credit unions include:
Added Indiana Credit Union League President John McKenzie: “Save to Win offers an option for developing good savings habits and improving people’s financial situations. A saver getting the maximum amount of entries will save more than $3,000 at their credit union over a year.
“As member-owned cooperatives, credit unions are especially focused on member benefits, and this program is all about helping members get ahead,” he said.
With Save to Win, Oregon credit union members open a certificate of deposit (CD), and for each $25 deposit, they gain entry into cash prize drawings. They can earn up to 10 prize entries per month, with cash prizes ranging from $25 to $5,000. Meanwhile, all of the members’ deposits stay in the account.
In Indiana, savers will also participate in the national monthly and quarterly prize drawings that offer prizes from $25 to $5,000. In addition, the Indiana League, through its Servicecorp arm, has funded a separate statewide prize pool for participating Indiana credit unions. Indiana’s statewide prize pool will award monthly and quarterly prizes from $50-$1,000. The combined prize pool is more than $140,000 in 2016.
Since the Save to Win program began in Michigan in 2009, it has expanded to eight other states, saving consumers $115 million. It typically appeals to consumers who don’t have strong savings habits.
“Save to Win really is a win-win because, not only do members get into the habit of saving, they also get a chance to win some great monthly and quarterly cash prizes too,” said Jim Lumpkin, president/CEO, USAgencies CU.
According to Rhonda Baggarley, president of Sunset Science Park FCU, Save to Win adds an element of fun to saving. “With the low savings rate environment that we’ve seen over the past several years, the incentive to save money has been minimal,” Baggarley said. “Hopefully the Save to Win CD will get members excited again about saving money.”
“The Save to Win program aligns very well with our commitment to offer high-value financial products and services to the communities we serve,” said Melissa Vigil, Northwest Community CU chief administrative officer. “We’ll be encouraging simple savings habits such as recurring transfers, so that members get the number of entries they want and can afford, easily. They will be rewarded with a healthy savings account and dividends, and the fun factor in participating.”