Save to Win Accounts Reach Million Dollar Milestone
August 19, 2014
August 19, 2014
Just 15 months after Save to Win launched in Washington, the six credit unions offering the program had opened 1,242 accounts, with deposits topping $1 million. The average account balance by July 31 was $812.39.
“Save to Win has been a great tool for us to help our members save money in a fun and unique way,” said Connection Credit Union CEO Scott Prior. Connection was one of the original credit unions launching Save to Win last April.
Save to Win is a year-long program in which members open a 12-month share certificate with at least $25. For every $25 they save they are entered into monthly and annual drawings to win prizes ranging from $50 to $5,000, up to 10 entries per month.
“It’s interesting the looks you get from people when you explain how it works,” said Prior, “as it almost sounds too good to be true.” Prior said that pairing Save to Win accounts with lower-interest loans for people with lower credit ratings has been a great way to put members on a track to brighter financial futures.
Unlike traditional lotteries, Save to Win participants keep all the money they invest in the account, receiving it back with interest at the end of the 12-month program.
Jim Morrell, CEO of Peninsula Credit Union, which has 243 Save to Win accounts with over $260,000 deposited, said, “I think the synopsis is, this works. It encourages people to save and they don’t have any chance of losing money.”
“Not enough people are in the habit of saving,” he continued. “This can help instill that habit.”
Save to Win was developed by the credit union think tank Filene and piloted in Michigan. It has since spread to three other states, including Washington.
Morrell said that he expects more and more credit unions to pick up the program, and he hopes that more states will consider it, too.
The Northwest Credit Union Association contracted with the CU Solutions Group to provide a turnkey operations program for the Washington credit unions offering the program. CU Solutions oversees drawings, legal issues and provides marketing resources to the credit unions. Strategic Link and the NWCUA fund the prize pool.
Editor’s note: Washington credit unions interested in learning more about Save to Win may contact Amanda Brenneman, NWCUA program manager, by calling 503.350.2208 or by emailing firstname.lastname@example.org.
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