HIGHTSTOWN, N.J.–New Jersey’s credit unions are backing legislation that would enable state-chartered banks and credit unions to offer prize-linked savings accounts.
A bill introduced in the state Senate would allow credit unions to stage the savings promotion and treat deposits as tickets in raffles. The goal of the effort is to boost savings, especially among low-income people. Any cash prizes are deposited into certificates of deposit at the respective financial institution. The bill has the backing of the New Jersey Credit Union League.
Ten other states: Washington, Maryland, Connecticut, Maine, Indiana, Nebraska, Rhode Island, New York, Michigan and North Carolina, already permit prize-linked savings.