Prize-linked savings program launches in Georgia
A change in Georgia law now allows for credit unions in the state to offer prize-linked savings programs.
The $413 million-asset Kinectic CU in Columbus, Ga., is the state's first credit union to offer Save to Win form CU Solutions Group, the nation's most widely used prize-linked savings offering that is now available in the Peach State.
Officials for CUSG said they are working with the League of Southeastern Credit Unions & Affiliates, which represents CUs in Alabama, Florida and Georgia, to expand the reach of the program in Georgia.
Prize-linked savings programs are one strategy credit unions are using to secure deposits and boost liquidity. Louisiana and Wisconsin debuted their own savings programs in May 2018. Earlier this year the Minnesota Credit Union Network partnered with the Ohio Credit Union League to offer prize-linked savings accounts.
CU Solutions Group said research connected with Save to Win found 52% of account holders report they had no emergency savings before participating in the program, with 11% of participants reporting they joined their credit union solely to take part in Save to Win.
The Save to Win program celebrated its 10-year anniversary this year. It is offered at 132 credit unions in 19 states.
Save to Win accounts offer participants a chance to win monthly and quarterly cash prizes each time they make a $25 deposit. To date, officials said, the program has helped members save approximately $195 million and has awarded more than $3.3 million in prizes.
“Save to Win is a proven way to motivate smart savings habits,” Dave Adams, president and CEO of CU Solutions Group, said in a statement. “Credit unions who are participating in the program say they see an increase in members who open secondary savings accounts and have been utilizing Save to Win in promoting membership and savings.”