ST. PAUL, Minn. — The Minnesota legislature is considering a pair of bills sponsored by the Minnesota CU Network that would allow CUs to offer prize-linked savings accounts.
The two bills — H.F. 1127 in the House and S.F. 1043 in the Senate — are designed to help encourage more Minnesotans to save money in a fun and effective manner. A statement from the league pointed to a 2013 Bankrate.com study that found more than 25% of respondents had no savings at all, and nearly 76% didn't have enough to cover six months of living expenses in the event of a job loss. Prize-linked savings are believed to encourage consumers to save by allowing them to experience the immediate reward of prizes and incentives as they save.
Minnesota CU Network reps "worked diligently to get these bills introduced," MnCUN VP of Governmental Affairs Mara Humphrey said in a statement, thanking the state's CUs and their members along with the bills' chief authors, Sen. Vicki Jensen and Rep. Jennifer Loon.
According to MnCUN, CUs that offer prize-linked savings accounts have helped more than 50,000 members save $94 million since 2009. Federal legislation was passed last year that allows states to approve these accounts, though the Minnesota state legislature must pass these two bills before they can be instituted there.
