RED BANK, N.J.– United Teletech Financial Credit Union has become the first credit union in New Jersey to launch a prize-linked savings program.
Called “U-WIN,” the program encourages people to save by offering chances to win cash prizes in lottery drawings that take place monthly, quarterly and annually. The program also provides free financial seminars and consultations with certified financial counselors to foster financial well-being.
“United Teletech Financial is proud to be a leader in giving our community a new way to save that leads to financial security,” said Leo Ardine, president and chief executive officer of the 24,000 member CU in central New Jersey.
In announcing the new savings program, United Teletech pointed to recent surveys showing how many Americans lack savings for even the smallest of financial emergencies, with 70% of the lowest-income households in the United States have no savings at all.
‘Alarming Statistics’
“These alarming statistics inspired United Teletech Financial to find a way to help our neighbors in central New Jersey build a financial cushion for emergencies and gain financial literacy to save for their future,” said Francis James, the credit union’s executive vice president and chief financial officer.
Through U-WIN, United Teletech said its goal is to help 2,000 new members save $500 each in 2020, which Ardine described as a “a $1 million lift” to the communities it serves in Monmouth and Ocean counties and portions of central Middlesex County.
With the program for every dollar saved up to $100 a depositor wins a chance to be entered into a monthly drawing to win one of 40 $25 prizes. The 12-month program also includes four $500 drawings with up to 300 chances to win and one, $1,000 drawing with up to 1,200 chances to score the big prize. Withdrawals are limited to two within the 12-month-program and a third results in closing the U-WIN account. After one year, all savings and winnings are automatically transferred into the member’s general savings account.
First Drawing in April
New Jersey’s CUs became eligible to offer prize-linked savings programs after then Gov. Chris Christie signed legislation in January 2016.
The first U-WIN lottery drawing will take place on April 16. All prize drawings are being managed by WINcentive, a service of the Minnesota Credit Union Network.
In addition to the cash prize incentives, the U-WIN initiative includes ongoing support from certified financial counselors.
United Teletech Financial said it will also be hosting a series of free seminars open to the public. The first U-WIN seminar, “All About Credit Unions: The Alternative Banking Option Where You’re a Member-Owner,” will take place on Tues., March 24.