Minnesota’s Prize-Linked Savings Balances reach $1.3 million dollars
Tuesday, June 21, 2016
Minnesota Credit Union Network - ST. PAUL, Minn. - Since the beginning of the year 2,900 Minnesotans have opened the prize-linked savings account WINcentive Savings at credit unions all over the state. Over $1.3 million has been saved in total; the median account balance being $225.
WINcentive™ Savings is the first prize-linked savings account to launch in Minnesota since legislators passed a new law last year allowing financial institutions to incentivize consumers to save by offering risk-free rewards. WINcentive prizes are offered on a monthly, quarterly and annual basis - up to $5,000. Account holders can qualify for up to 4 chances per month for each $25.00 increase in their savings balance.
Key findings from a survey* of WINcentive Savings accountholders show:
52% of respondents meet the basic definition of financial vulnerability. Basic Financial Vulnerability is characterized by having one or more of the following characteristics: low or middle income, no regular savings, or few liquid assets.
WINcentive is attracting many CU members to their first-ever committed savings product. 77% of respondents do not currently have a share certificate or CD, and 50% have never had one. 86% do not currently have a holiday club account, and 77% of all respondents have never had one.
55% of respondents have high debt. While most respondents have middle or high income, 55% have debt above $10,000, and 31% have between $1 and $10,000 in debt. Only 14% of respondents are currently debt-free.
50% of all respondents don’t have emergency savings to cover 3 months of expenses.
WINcentive attracts new members and strengthens relationships between members and credit unions. 12% of respondents joined a credit union for WINcentive; 80% said WINcentive makes them more excited about their credit union; and 62% of respondents said that building savings would make them more likely to use other financial products at their credit union.
WINcentive Savings is a product of the Minnesota Credit Union Network (MnCUN), which is the second state credit union league in the United States to launch a PLS product. The Statewide prize-pool, facilitated by MnCUN, has awarded 256 total prizes equaling $31,000 to date.
More information about WINcentive Savings can be found at wincentivesavings.org.
*The data in this report was provided by Doorways to Dreams (D2D) Fund, based on a survey administered to WINcentive account holders by their credit unions. Survey responses were collected from January through April 2016.
The Minnesota Credit Union Network is the statewide trade association that works to ensure the success, growth and vitality of Minnesota credit unions. With nearly $20 billion in assets, Minnesota credit unions are local, trusted financial cooperatives that serve more than 1.6 million members at almost 400 branch locations around the state. As not-for-profit institutions, credit unions give back to the communities they serve. For more information, visit www.mncun.org.