Del-One Federal Credit Union is set to be the first credit union in the First State to offer prize-linked savings after Delaware Gov. John Carney signed into law a bill that allows financial institutions to offer cash prizes to savers who make regular deposits into their accounts.
Under Del-One FCU’s program, which will be launched across its ten-branch statewide network, with each deposit a member makes in their savings account, they will be entered into a pool, thereby increasing their odds of winning of a cash prize.
Delaware will become the 15th state in the nation to launch a prize-linked savings program and is also the 22nd state to pass such legislation allowing financial institutions to participate. The concept was first introduced in Michigan in 2009, and since that time 60,000 people in the state have saved more than $140 million, with an average account balance of $2,000.
“We are thrilled to offer this enticing savings program to all Delawareans and to join our colleagues across the country that have done so much to boost savings rates in their communities,” Del-One President and CEO Dion Williams said in a statement.
Gov. Carney echoed that sentiment.
“Delawareans across all income levels are facing a significant level of financial volatility and come up $1,800 short when faced with a large, unexpected expense,” said Carney. “This program is a great way to save and possibly get rewarded with a cash prize for doing so.”
Del-One's program is still in development, with a launch date to be announced later via the credit union's website.
