HARAHAN, La. – Louisiana’s credit unions have now rolled out a new prize-linked savings initiative called the Lucky Lagniappe Savings Account Program.
“Lagniappe” is a Louisiana French word for a small gift given to a customer by a merchant at the time of purchase.
The new Louisiana program is the result of a 2016 law that allows credit unions to provide members with prize-linked savings accounts.
The Louisiana Credit Union League said it and 12 credit unions across the state are collaborating to offer the Lucky Lagniappe. By making a $20 deposit, members of participating credit unions will be entered into drawings throughout the year and will get chances to win cash prizes – all while building their savings balances. Prizes can range anywhere from $100 to $5,000.
“The best part of Lucky Lagniappe is that members are incentivized to grow their savings account regardless of the drawing outcome,” said Louisiana Credit Union League President Bob Gallman. “The program helps consumers develop good savings habits and improves their financial situations. It rewards credit union members for saving money, not spending money.”
In January, 12 credit unions in Louisiana launched the Lucky Lagniappe program. Credit union members have the chance to win monthly and quarterly prizes from two different prize pools, which are worth more than $140,000. Savers earn entries for every $20 they save in a given month, with a maximum of ten entries per month. The Lucky Lagniappe Savings program will award a $5,000 grand prize this year, plus 10 monthly prizes of $100 and quarterly prizes of $500. A saver getting the maximum amount of entries will save more than $3,000 at their credit union in one year alone.
“As member-owned cooperatives, credit unions are especially focused on member benefits, and this program is all about helping members get ahead,” said Gallman. “This gives people a safety net. That way, when the inevitable bumps in the road do come along, it’s not a catastrophe. It’s just an inconvenience.”
More info can be found at: www.luckylagniappe.com