How to Win Big with a Savings Account Lottery

Posted on 02/13/2014

Need an extra incentive to sock money away in your savings account? A savings account lottery may help. Prize-linked savings accounts are becoming more popular, where making a deposit into your savings account enters you into a lottery. Instead of blowing a buck on the Powerball, consider trying your luck with the savings account lottery.

Started in Michigan
Most states still don't allow credit unions or banks to offer a game of chance, but in Michigan the rules are different. A handful of credit unions started offering prize-linked accounts back in 2009 through a program called Save to Win.

More States Pass Legislation
According to reports there are now a total of seven states that have passed legislation allowing prize-linked accounts at credit unions: Michigan, Nebraska, North Carolina, Washington, Maryland, Rhode Island and Connecticut. Connecticut is the latest state to allow the program. New York is currently considering similar legislation.

Finding a Participating Credit Union
For those interested in joining a savings account lottery, the first step is finding a participating credit union. For instance in North Carolina there are currently seven credit unions that are part of the Save to Win program. Often you must meet certain requirements to join a credit union which could include working at a particular company or living in a certain community.

How it Works
Once you have a qualifying account open start making deposits. Every $25 deposited into the account gives you another chance at winning the lottery. According to the rules, each account holder is allowed up to ten entries a month. Monthly prizes range from $25 to $100. Quarterly prizes can be as much as $1,500 and grand prizes of up to $10,000 are also handed out each year.

Average Savings Account Boosted
According to CNN, in Michigan the average savings account balance is four times bigger than it was when Save to Win first began. In 2009 the average balance was $734 compared to today's average balance of $2,873. Research shows that this is a powerful tool to get non-savers motivated to save.

By Alison Storm

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