New York Gov. Andrew Cuomo has signed into law a measure that allows financial institutions to offer raffle-style programs to encourage saving.
The law, which takes effect in September 2015, gives credit unions and banks the ability to offer prize giveaways to consumers who deposit funds into their savings accounts. Such prize-linked savings programs have become popular with credit unions in a number of states, inspired by the Filene Research Institute's innovation development group called i3.
"This important law will encourage New York consumers to save money more often and more regularly," said William J. Mellin, president of the Credit Union Association of New York, in a news release Wednesday. "Ultimately, prize-linked savings accounts will benefit the working and middle-class families who continually struggle to put money away for the future."
Gov. Cuomo's office did not immediately respond to a request for comment.
Similar measures have also gained popularity at the national level. The House on Sept. 15 passed a bill to allow savings-promotion raffles. A companion bill also has bipartisan support in the Senate.
