Iowa’s not-for-profit, member owned credit unions want to help Iowans build savings by offering a prize-linked savings program where every participant wins. SF 490 recently passed by the Iowa Senate, would allow credit unions to begin offering prize linked savings accounts to incentivize Iowans to save more money. The bill now moves into the House.
Prize-linked savings programs provide incentives to consumers to save more money on a regular basis by offering various prizes tied to a unique savings account. The promotions keep the saver motivated to save throughout the year.
For example, for every $25 put into such an account at a credit union or bank, the saver would receive a chance to win prizes through a raffle. The member’s money remains safe in their account and accrues interest, in addition to receiving chances to win prizes.