ALBANY, N.Y. (9/26/14)--Add one more state to the growing list of those across the country who have enacted laws allowing credit unions to offer prize-linked savings (PLS) accounts, an innovative product that incentivizes members to save.
New York Gov. Andrew Cuomo this week signed the pro-credit union bill into law, which will let the Empire State in on the fun of the raffle-style savings programs.
PLS programs offer members entries to monthly and annual cash drawings each time they put money into their savings accounts. The possibility of winning the cash encourages members to save without requiring them to risk losing any money.
"This important law will encourage New York consumers to save money more often and more regularly," said William J. Mellin, president/CEO of the Credit Union Association of New York. "Ultimately, prize-linked saving accounts will benefit the working- and middle-class families who continually struggle to put money away for the future."
The law will take effect Sept. 23, 2015.
"It's encouraging to see the governor and legislature working together to pass meaningful laws that will provide financial relief to those who need it most," Mellin added.
PLS accounts are legal in Michigan, Nebraska, North Carolina, Washington, Connecticut, Indiana, Maine, Maryland and Rhode Island.