Prize-Linked Savings Contest Expands
A first-of-its-kind multistate savings contest is headed for credit union members in Michigan, Nebraska and Connecticut as part of a program CU Solutions Group said has helped members sock away more than $94 million.
Typically, savings contests are state-centered, but this marks the first time credit unions in several states have joined to promote a single, large-scale contest, CU Solutions said.
Members must open a 12-month share certificate to enter the contest, called Save to Win. For each deposit of at least $25 at a participating credit union, they earn up to 10 entries per month in a monthly prize drawing, according to CU Solutions Group. The contest promises $3,750 in prizes to 150 members each month. Members' entries also go into quarterly drawings for prizes ranging from $500 to $5,000.
"Save to Win is the perfect example of credit unions doing what they do best – helping members improve their financial lives. The program helps them learn critical life skills and grow their personal wealth while having fun all at the same time," CU Solutions Group CEO David Adams said.
Savings contests are not unusual in the credit union business. Connex Credit Union, which operates in and around New Haven, Conn., for example, gave away over $5,000 during a five-month savings contest last spring. Dallas-based Neighborhood Credit Union awarded $10,000 to a member in August as part of a savings contest it has run since 2007.
However, Save to Win is the nation’s largest reward-driven savings program. It was launched by the Michigan Credit Union League & Affiliates, Filene Research Institute and the Doorways to Dreams, which is a Boston-based non-profit organization.
North Carolina, New York and Washington intend to join the multistate contest in 2016 and 2017, according to the organization.