$1.55 Million Dollars Saved in WINcentive® Prize Linked Savings
Wednesday, July 20, 2016
Saint Paul, Minn. – WINcentive Prize-Linked Savings is proving to help Minnesotans save more funds for a rainy day, something that is bucking the trend of dismal national savings rates. In the first six months of the program, credit union members in the state have opened over 3,200 accounts and saved over $1.55 million in the new WINcentive Savings program offered by 14 Minnesota credit unions and facilitated by the Minnesota Credit Union Network.
WINcentive Savings is the first prize-linked savings account to launch since legislators in Minnesota 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 four chances per month for each $25 increase in their savings balance. The Statewide prize-pool has awarded 311 total prizes equaling $41,000 to date.
Key findings from a survey* of WINcentive Savings accountholders show:
- 51% of respondents meet the basic definition of financial vulnerability. Basic financial vulnerability is characterized by having one or more of the following: low-middle income, no regular savings, or few liquid assets.
- WINcentive is attracting many credit union members to their first ever committed savings product.
- 78% of participants do not currently have a share certificate or CD, and 54% of participants have never had one.
- 87% do not currently have a holiday club account, and 78% of all respondents have never had one.
- 81% said WINcentive makes them more excited about their credit union.
- 61% of participants said that building their savings would make them more likely to use other financial products at their credit union.
- 15% joined their credit union for the WINcentive account.
- 49% of all respondents don’t have emergency savings for 3 months of expenses.
“As risk-free way to build a rainy day account, WINcenitve Savings helps make regular saving approachable and fun,” said Andrea Molnau, Director of Communications for the Minnesota Credit Union Network. “WINcentive is providing some consumers with their first savings product: strengthening the relationship between credit unions and their members, while also attracting new members. That’s a win for consumers and the credit unions that are offering the program.”
Participating Minnesota Credit Unions include:
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 new WINcentive account holders by their credit unions. Survey responses were collected from January through June, 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.