Minnesotans Save Nearly $200K in First-Time Prized-Linked Accounts
Thursday, February 25, 2016
Credit Union Journal © February 25, 2016 – More than one thousand Minnesotans opened prize-linked savings accounts at credit unions since they were launched in the North Star State in January.
WINcentive accounts incentivize customers to save and possibly win cash prizes, linking the amount of increase in balances to earning entry into monthly, quarterly, and annual statewide drawings, free of cost or monthly fees.
During the first month of the program, a dozen credit unions across the state opened a total of 1,095 accounts and members save $197,721.40. Eligible account-holders may take a maximum of 4 chances per month for each $25 increase in their balance. They are able to win $100 monthly, $1,000 quarterly, and up to $5,000 yearly prizes.
Created by the credit union league Minnesota Credit Union Network (MnCUN), WINcentive Savings is the first prize-linked savings account in Minnesota, after legislators last year passed a law that permit financial institutions to incentivize customers to save by offering risk-free rewards.
MnCUN will partner with Doorways to Dreams Fund, a national nonprofit that spearheaded product innovations for “financially vulnerable” Americans, and the Pew Charitable Trusts to conduct a research study on prize-linked savings accounts in Minnesota, the first study of its kind to perform a comprehensive review of consumer behavior and use of such accounts in the United States.