Heard on the Street: New credit union accounts include prizes
Saturday, January 23, 2016
Post-Bulletin © January 23, 2016 – Three credit unions with a presence in Rochester— First Alliance Credit Union, Mayo Employees Federal Credit Union and Affinity Plus Federal Credit Union — are among the 14 statewide that are offering a new prize-linked savings account called “WINcentive.”
The Minnesota Credit Union League announced it is launching the accounts.
WINcentive will reward savers with entries to a raffle-style prize pool. Eligible account-holders will be able to win $100 monthly and $1,000 quarterly prizes, in addition to a $5,000 grand prize.
The current Minnesota prize pool is $85,000, which MnCUN said will be distributed in full to credit union members in 2016. The prize pool will continue to grow as additional credit unions offer WINcentive.
Under the program credit union savings account-holders can qualify for up to four chances per month for each $25 increase in their balance, said a MnCUN spokeswoman.
“So anyone who deposits $100 in a month, without making a withdrawal, will receive four entries,” the spokeswoman said. “While they are able to deposit more than $100 in the account, the maximum number of entries per month is four. If they increase their balance by $25 they will receive one entry.”
MnCUN noted that Doorways to Dreams Fund, a national non-profit that has pioneered product innovations for “financially vulnerable” Americans, has been collaborating closely with MnCUN on the product design and implementation of the WINcentive plan. Fifteen other states already offer prize-linked savings plans.
MnCUN also announced that it is partnering with D2D and the Pew Charitable Trusts to conduct a research study regarding PLS accounts in Minnesota, which will be the first study of its kind to perform a comprehensive review of consumer behavior and use of PLS in the U.S. — Mike Klein