As a result of a new state law advocated by the Louisiana Credit Union League, Louisiana’s credit unions can now provide their members with prize-linked savings accounts that can help them win big bucks just for saving a few dollars.
The Louisiana Credit Union League and 12 credit unions across the state are collaborating to offer an innovative financial product, the Lucky Lagniappe. By making a $20 deposit, members of participating credit unions will be entered into drawings throughout the year and will get chances to win cash prizes--all while building their savings balances. Prizes can range anywhere from $100 to $5,000.
“The best part of Lucky Lagniappe is that members are incentivized to grow their savings account regardless of the drawing outcome,” says Louisiana Credit Union League President Bob Gallman. “The program helps consumers develop good savings habits and improves their financial situations. It rewards credit union members for saving money, not spending money.”
In January, 12 credit unions in Louisiana launched the Lucky Lagniappe program. Credit union members have the chance to win monthly and quarterly prizes from two different prize pools, which are worth more than $140,000. Savers earn entries for every $20 they save in a month, with a maximum of 10 entries each month.
The Lucky Lagniappe Savings program will award a $5,000 grand prize this year, plus 10 monthly prizes of $100 and quarterly prizes of $500. A saver getting the maximum amount of entries will save more than $3,000 at their credit union in one year alone.
“As member-owned cooperatives, credit unions are especially focused on member benefits, and this program is all about helping members get ahead,” said Gallman. “This gives people a safety net. That way, when the inevitable bumps in the road do come along, it’s not a catastrophe. It’s just an inconvenience.”