Backed by the advocacy efforts of state credit union leagues, legislation that will allow credit union members to save through incentive-based prize-linked saving (PLS) accounts passed in several states in 2016.
PLS programs encourage positive savings behavior by giving members chances to win cash prizes for each time they put a set amount of money into a savings account.
Not all members win the cash, of course, but they are guaranteed to come away with a sturdier savings account and improved savings habits.
States that passed PLS legislation in 2016 include:
Currently, 22 states expressly allow such programs: Michigan, Rhode Island, Maine, Washington, North Carolina, Nebraska, Maryland, Connecticut, Indiana, New York, Virginia, Arkansas, Minnesota, Oregon, Illinois, New Jersey, Kansas, Missouri, South Carolina, Arizona, Louisiana and Massachusetts.