WASHINGTON — Two members of the Senate's Economic Mobility Caucus introduced a bill Tuesday that would allow prize-linked savings accounts like the ones pioneered by credit unions nationwide.
The American Savings Promotion Act would allow the creation of special accounts that encourage savings by offering a prize, like the $100,000 offered by Michigan credit unions or more recently by credit unions in North Carolina, Nebraska and Washington states.
Dozens of credit unions in those four states now offer their members a chance to compete for a cash prize by opening up and maintaining a special prize-linked account. Credit unions in these four states successfully lobbied their lawmakers to pass prize-link savings bills. Several other states have bills pending.
"Prize-linked accounts are proven to increase savings-rates, which empower individuals to better endure financial strain and climb the economic ladder," said Sen. Jerry Moran (R-Kan.), one of the bill's sponsors. "By encouraging personal saving, PLS accounts keep money in the hands of families who need it most."
The bill's other sponsor is Sen. Sherrod Brown (D-Ohio).
