LANSING, Mich. — Apparently, $100,000 is enough incentive to encourage members to save.
A new program called Save to Win will award one member of a Michigan credit union $100,000 early next year. Eight CUs in the Great Lakes State are participating in the offer that allows members to add monthly deposits to a CD to gain more chances at the grand prize, which will be handed out to one member in January 2010.
The program launched in February and through early March 3,536 accounts were opened for $654,794 in total deposits, for an average deposit of $185.18, according to the Michigan Credit Union League, one of the program's sponsors. "Within the first month, we've seen significant deposits," said MCUL CEO David Adams. "This shows the program is needed and we're encouraged that it will be successful."
Members open a share certificate, and for each deposit of $25 or more, they earn an entry into the grand prize drawing, up to 10 prize entries per month. In addition to the $100,000, each credit union is awarding $400 in monthly prizes to members who participate in Save to Win. The rates for the CDs vary based on each credit union's pricing, the league explained, without disclosing rates.
The eight participating Michigan credit unions are: Central Macomb Community CU, Clinton Township; Christian Financial CU, Roseville; Communicating Arts CU, Detroit; E&A CU, Port Huron; ELGA CU, Burton; Frankenmuth CU, Frankenmuth; NuUnion CU, Lansing; and Option 1 CU, Grand Rapids.
In addition to the MCUL, the pilot program is supported by a partnership among the Filene Research Institute and the D2D Fund. The Save To Win savings program has been championed by Harvard Business School Professor Peter Tufano, founder of the D2D Fund. The program is underwritten by a grant from the Center for Financial Services Innovation.
While many Americans are borrowing more money than they are saving, the league pointed out, Save to Win gives credit union members an option for improving their financial situations. "This pilot program will teach us many things about the savings habits of credit union members," said Adams, "which will allow us to continue to help members and fulfill our mission."
