New York CUs offer prize-linked savings
ALBANY, N.Y. (10/2/15)--More than 30 credit unions across New York Thursday launched Lucky Savers, a new statewide cash prize-linked savings program, according to the New York Credit Union Association (NYCUA).
Lucky Savers helps members earn cash prizes while saving money each month. The program is designed to help low-income individuals and traditional non-savers develop sound savings habits.
Lucky Savers accounts are 12-month certificates. Participants are required to deposit a minimum of $25 into the certificate. For every $25 in month-over-month balance increases, accountholders earn one entry into a monthly and quarterly drawing for cash prizes. They can earn up to 10 entries into the drawing per month, and there is no cap on the amount they can deposit and save, said NYCUA.
“There are no losers with this program, only winners,” said NYCUA President/CEO William J. Mellin. “Lucky Savers is an important program that will entice and encourage New York consumers to save money more often and more regularly. Ultimately, Lucky Savers will benefit the poor, working- and middle-class families who continually struggle to put money away for the future.”
The program is administered by Save to Win, a product developed by credit union think tank Filene Research Institute and the D2D Fund, a nonprofit organization that tests financial products and builds awareness about the needs and the potential of low-income communities.
In 2014, Gov. Andrew Cuomo signed a law that allows New York financial institutions to offer prize-linked savings accounts. NYCUA strongly supported the legislation and worked closely with regulators, the legislature and Cuomo’s office to ensure its passage.