St. Paul, Minn. – The Minnesota Credit Union Network (MnCUN) announced that it is launching a prize-linked savings (PLS) account called "WINcentive" that will be available at fourteen credit unions across the state.
WINcentive will reward savers with entries to a raffle-style prize pool. Eligible account-holders will be able to win $100 monthly and $1,000 quarterly prizes, in addition to a $5,000 grand prize.
The current Minnesota prize pool is $85,000, which MnCUN said will be distributed in full to credit union members in 2016. MnCUN anticipates that the prize pool will continue to grow as additional credit unions offer WINcentive.
Under the program credit union savings account-holders can qualify for up to four chances per month for each $25 increase in their balance, said a MnCUN spokeswoman.
"So anyone who deposits $100 in a month, without making a withdrawal, will receive four entries," the spokeswoman said. "While they are able to deposit more than $100 in the account, the maximum number of entries per month is four. If they increase their balance by $25 they will receive one entry."
MnCUN noted that Doorways to Dreams (D2D) Fund, a national non-\profit that has pioneered product innovations for "financially vulnerable" Americans, has been collaborating closely with MnCUN to share best practices related to product design and implementation of the WINcentive plan.
The fourteen Minnesota credit unions that are launching the program comprise: Affinity Plus Federal Credit Union ($1.7 billion in assets; based in St. Paul); CITIES Credit Union ($27 million; Vadnais Heights); Financial One Credit Union ($82 million; Columbia Height); First Alliance Credit Union ($153 million; Rochester); Fulda Area Credit Union ($84 million; Fulda); Hiway Federal Credit Union ($994 million; St. Paul); Mayo Employees Federal Credit Union ($756 million; Rochester); Mid Minnesota Federal Credit Union ($274 million; Baxter); North Memorial Federal Credit Union ($35 million; Robbinsdale); St. Cloud Federal Credit Union ($120 million; St. Cloud); St. Paul Federal Credit Union ($141 million; St. Paul); US Federal Credit Union ($1 billion; Burnsville); Wakota Federal Credit Union ($23 million; South St. Paul); and West Financial Credit Union ($25 million; Medina).
Fifteen other states already offer PLS, but the MnCUN had developed an exclusive initiative for Minnesota credit unions, the network added.
"Prize-linked savings is an innovative financial product that makes it easier for people to save," said Tim Flacke, executive director of D2D. "By launching WINcentive Savings in Minnesota, credit unions are showing leadership and their commitment to improving the lives of hundreds of thousands of people across the state."
MnCUN also announced that it is partnering with D2D and the Pew Charitable Trusts to conduct a research study regarding PLS accounts in Minnesota, which will be the first study of its kind to perform a comprehensive review of consumer behavior and use of PLS in the U.S.
Pew will review the data to determine whether consumers are funding PLS accounts from existing savings, or are really making positive financial changes to fund the accounts with new available savings.
