WASHINGTON-A key FDIC advisory committee held a public review last week on so-called prize-linked savings, a concept being popularized among credit unions.
"Our advisory committee will look at how game-based incentives to encourage saving, so-called 'prize-linked savings,' such as sweepstakes and rewards, can promote saving, particularly among lower-income consumers," said FDIC Chair Sheila Bair. "The group will explore a number of innovations, including how to leverage state lottery participation into a mechanism to start consumers on the path to long-term saving for their futures."
A growing number of credit unions have launched prize-linked savings contest, which was developed for credit unions by the Filene Research Institute. In a variety of forms, credit unions are offering members rewards to improve their personal budgeting and increase savings. In the latest form, eight Michigan credit unions are offering members the chance to win a grand prize of $100,000 by adding to their savings.
The FDIC's Advisory Committee on Economic Inclusion, known as ComE-IN, is reviewing how banks can improve savings in underserved and low- and moderate income families.
