Legislation to incentivize people to put money in their savings by offering savings promotion raffles passed off of the floor Monday. With the Prize Linked Savings (PLS) system, every deposit (up to 10 per month) made by a customer at a participating credit union acts as a ticket in a monthly and quarterly prize drawing. While consumers have the opportunity to win prizes through this initiative, they do not risk losing their savings.
Credit unions in four states (Washington, Nebraska, Michigan, and North Carolina) have instituted this type of program in recent years. On average, the 50,076 accountholders who participated in these initiatives over a four year period saved from $921-$2,662 per account.
The bill passed unanimously, 54-0, and was signed into law Thursday. (H.F. 1127)