NAPERVILLE, Ill.–Illinois’ credit unions are the latest to begin offering the “Save to Win” program, which offers prizes in order to encourage people to save more money.
More than 100 CUs nationally are now participating, including several new CUs in Indiana.
“We are excited to be able to offer a prize linked savings program to Illinois credit unions through Save to Win,” said Vicki Ponzo, Executive Director of the Illinois Credit Union Foundation. “One of the goals of the ICU Foundation is to help people develop money management skills and this is a great way for credit unions to incentivize members to develop good savings habits.”
According to the ICUL, the best part of the credit union-backed program is that members are guaranteed to have more money saved than when they started, because they keep all the money they have saved plus interest regardless of the drawing outcome. Save to Win rewards members for saving money, not spending money.
The first credit union to participate in Illinois is Catholic & Community Credit Union.
“We are excited to be able to offer this new savings opportunity for our members,” CEO, Ken Bossung said. “Saving money is important for everyone’s financial health, but today’s interest rates don’t provide much incentive to save anymore. We hope that the Save to Win program gives our members the incentive to save again, and makes it easier for our members to develop the good habit of saving. We believe that encouraging good savings habits is an important part of our mission of improving our members financial well-being.”
Indiana Adds New CUs
Meanwhile, in Indiana, since launch at the beginning of 2016, members at 12 credit unions participating in the Save to Win program across the state have saved $1.6 million. Most recently, 13 Hoosiers were named as winners from among the 22,520 account holders at 117 credit unions in 10 states who have saved more than $53 million since the beginning of 2016.
The Indiana winners were drawn from four different Indiana credit unions and each won either $25 or $50 in May for their participation in their credit union’s Save to Win prize-linked savings program. For every $25 deposited into their Save to Win account, they earned one entry into monthly and quarterly prize drawings. This is the second drawing of the Save to Win program in the state of Indiana.
“We are adding credit unions to the program which makes even more members eligible to win,” said Indiana Credit Union League President John McKenzie. “Regardless of the prize drawing outcome, savers at all participating credit unions have the opportunity to practice good savings habits.”
Three additional credit unions launched Save to Win on July 1, and one more will launch on August 1, bringing the total number of participants to 16 across the state.
Minnesota Announces Winners
Meanwhile, in Minnesota, the state’s new WINcentive Prize-Linked Savings is proving to help Minnesotans save more funds for a rainy day. 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 a risk-free way to build a rainy day account, WINcentive 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.”