LIVONIA, Mich.—A prize-linked savings program pioneered by the Michigan CU League and its subsidiary, CU Solutions Group, is expanding into other states.
According to the MCUL, its “Save to Win” program is being explored by credit unions in North Carolina, Washington and New York, where plans call for rolling out the initiative in 2016 and 2017. Save to Win offers members a 12-month share certificate, and with every deposit of $25 or more members are entered into a monthly prize drawing. A member may receive up to 10 entries per month. As many as 150 members can win prizes during any given month. There are also quarterly drawings for prizes from $500, to $5,000.
The goal of the program is to motivate people to do a better job of savings. According to the league, since the launch of Save to Win more than 50,000 CU members have participated, saving $94-million in the process.
In December 2014 President Obama signed the American Savings Promotion Act into law, which allows financial institutions nationally to offer prize-linked savings products.
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