ST. PAUL, Minn.—Minnesota CUs moved one step closer to being able to offer prize-linked savings programs.
The Minnesota House of Representatives Thursday passed a Minnesota Credit Union Network-sponsored bill (H.F. 1127) on a 125-2 vote.
H.F. 1127, authored by Rep. Jennifer Loon (R-District 48B), allows credit unions to offer prize-linked savings (PLS) accounts, a concept that is spreading across the country.
The MnCUN reminded that prize-linked savings accounts offer savers the opportunity to win a larger prize with no risk of losing their savings. “They encourage consumers to save by changing the savings experience and allowing them to feel the immediate rewards of prizes and incentives. Since 2009, credit unions in the U.S. that offer PLS accounts have helped over 50,000 members save $94 million.”
The PLS bill was a key focus for the Minnesota Credit Union (MnCUN) this legislative session.
“We thank the members of the Minnesota House of Representatives for their support of this bill,” said MnCUN president and CEO Mark Cummins. “Prize-linked savings accounts will give credit unions additional opportunities to help their members build a stronger financial future.”
The Senate version of the bill (S.F. 1043), authored by Sen. Vicki Jensen (DFL) District 24), awaits a Senate floor vote.