Savings Plan Raffles

Legislation was introduced with the goal of incentivizing higher savings rates among consumers through allowing credit unions to establish savings promotion raffles. With this Prize Linked Savings (PLS) system, every deposit (up to ten 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. The funding for the prizes would come from the financial institutions’ foundations.

Credit unions in four states (Washington, Nebraska, Michigan and North Carolina) have instituted this type of program in recent years. Proponents of the legislation argue that a savings raffle program in Minnesota could positively impact savings in this state.

STATUS: The bill is on the Senate Floor. (S.F. 1043)

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