HARRISBURG, Pa. (3/30/15)--The power of prize-linked savings (PLS) accounts may soon continue its march across the country, as a bill was recently introduced in the Pennsylvania Legislature that would authorize credit unions to offer the innovative savings product to members.
House Bill 837, the Savings Promotion Raffle Authorization Act, was introduced by Rep. Rosemary Brown (R-Monroe), who has been working extensively with the Pennsylvania Credit Union Association (PCUA) and other stakeholders to develop the legislation (
Life is a Highway
Savings promotion raffles, or PLS accounts, encourage credit union members to save by incentivizing them with opportunities to win cash each time they put a set amount of money away each month.
While of course not every member who saves money wins a cash prize, they still will have built up their savings account and bolstered their savings habits.
"Studies indicate that consumers are not saving for their futures, and programs to promote savings are a win for all consumers," said Patrick Conway, PCUA president/CEO. "Credit unions work daily to better the lives of members, and this initiative is another avenue to assist them."
Eleven states have authorized credit unions to offer PLS accounts, including Connecticut, Indiana, Maine, Maryland, Michigan, Nebraska, New York, North Carolina, Rhode Island, Virginia and Washington.
Bills that would authorize credit unions to offer PLS accounts are also making their way through state legislatures in Oregon, Minnesota and New Jersey.