1st Lucky Savers in N.Y. save $983K
ALBANY, N.Y. (11/17/15)--Those looking for proof that prize-linked savings (PLS) programs encourage positive savings behavior need to look no further than the “Lucky Savers” in New York, who saved nearly $1 million in the first month that PLS accounts were offered in the state (The Point Nov. 16).
More than 1,380 Lucky Savers accounts were opened during October, the first month of the program, and savers deposited an average of $712 during the period.
The first monthly cash-prize drawing will result in 26 credit union savers receiving a portion of $1,000 in their accounts.
Lucky Savers accounts are 12-month certificates. Similar to other PLS programs, savers must deposit at least $25 to gain an entry in to a cash-prize raffle, though there is no cap to the amount that can be deposited. Depositors can earn up to 10 entries per month.
The month proved so successful, meanwhile, the New York Credit Union Association announced toward the end of October that it would offer a second round starting Jan. 1.