BREA, Calif.–American First Credit Union has awarded its third quarterly $10,000 prize to winner Steven F. of La Habra, Calif., who in turn donated half the prize to a charity.
The prize is the latest to be offered as part of Big Prize Savings, a savings account that awards monthly, quarterly, and yearly cash prizes to accountholders who maintain and increase their savings.
“Growing up in La Habra, I drove past here and was curious about the difference between a bank and credit union,” said Steven, as he accepted the prize while surrounded by family. “At AFCU, people know me by name, and always give me great service.”
Steven said he plans to not only keep on saving, but also to give back to the community.
“As this is an unexpected blessing, I plan on donating half to the city of La Habra—to the Gary Center and Meals-on-Wheels.”
The Big Prize Savings initiative is based on research conducted by Harvard Business School and made possible due to recent changes in California state legislation, which now allow for the establishment of prize-linked savings accounts, the credit union said. This research shows that bank-sponsored cash incentive programs help encourage savers to develop and maintain healthy, consistent money saving habits.
At the time of each monthly drawing, all American First Credit Union members maintaining an average monthly daily savings balance of $500 or more are entered into the contest. Savers receive one entry for every $25, so the more money they save, the more chances they’ll have to win. For example, a saver who maintains a daily average of $500 over the course of the month will receive 20 entries into the drawing, while another who saves $525 will receive 21.
In addition to the quarterly $10,000 prize, the Big Prize Savings program also rewards a $1,000 monthly prize, and a $50,000 yearly grand prize. Big Prize Savings accounts are available to all American First members in Southern California. Others who qualify for credit union membership through family, their employer, or a community group are also eligible to participate. The Big Prize Savings account has no fees and pays interest on qualified balances.
“We’re thrilled to grant the latest Big Prize Savings reward to a La Habra local. Good financial decisions lead to rewards, whether they’re from the result of an incentive prize like this, or from the steady, responsible saving we hope it encourages.” said Jon Shigematsu, CEO/president of American First Credit Union. “We started Big Prize Savings to give back to people who save, and are particularly excited to give back to [Steven] because of the longevity of his savings with us.”
American First Credit Union will be announcing their first $50,000 winner in January 2020.