ST. PAUL, Minn.–Launching this month, more than a half-million Minnesotans will have access to the state’s first prize-linked savings account, called “Wincentive Savings.”
The program, available through 14 Minnesota CUs across the state, will reward savers for monthly deposits of up to $100 with entries to a raffle-style prize pool. Eligible account holders will be able to win $100 monthly and $1,000 quarterly prizes in addition to the $5,000 grand prize. During 2016, $85,000 will be available and will be awarded.
Minnesota is one of 16 states that now permit prize-linked savings programs.
WINcentive Savings is a product of the Minnesota Credit Union Network (MnCUN), which is the second state credit union league to launch a prize-linked savings product, following Michigan.
The new offering comes as part of a partnership between credit unions and Doorways to Dreams (D2D) Fund, a national nonprofit that has pioneered product innovations for financially vulnerable Americans that has been collaborating with MnCUN to share best practices related to product design and implementation. Fifteen other states already offer prize-linked savings, but the Minnesota Credit Union Network developed an exclusive initiative for Minnesota Credit Unions.
"Prize-linked savings is an innovative financial product that makes it easier for people to save," said Tim Flacke, Executive Director of D2D. "By launching WINcentive Savings in Minnesota, credit unions are showing leadership and their commitment to improving the lives of hundreds of thousands of people across the state."
The Minnesota CU Network said it is also partnering with D2D and The Pew Charitable Trusts to do a research study regarding prize-linked savings accounts in Minnesota, which is the first study of its kind to do a comprehensive review of consumer behavior and use of prize-linked savings in the United States. Pew will be reviewing data to determine whether consumers are funding PLS accounts from existing savings, or are really making positive financial changes in habit to fund the accounts with new available savings, the MnCUN said.
The current Minnesota Prize Pool is $85,000, which will be distributed in full to credit union members in 2016. MnCUN said anticipates that the prize pool will continue to grow as additional credit unions offer WINcentive.
The following 14 credit unions are launching the program:
Affinity Plus Federal Credit Union
Mayo Employees Federal Credit Union
Mid-Minnesota Federal Credit Union
North Memorial Federal Credit Union
St. Cloud Federal Credit Union
More info on the Minnesota program is here WINcentiveSavings.org.