SAN FRANCISCO — Twenty credit unions from across the country have agreed to take part in a pilot program that rewards users for saving money and paying down debt.
SaveUp (
"That's become an almost ubiquitous rewards program, but it's not really aligned in the best interests of the consumer," said Priya Haji, CEO of SaveUp.
Haji explained that SaveUp's principals created the venture out of a desire to "flip that model on its head and provide a new rewards program aligned with consumers' best interests and goals," while also putting institutions in the position of being an ally for their customers and members.
Users can register for SaveUp in about one minute, and any account where a consumer saves money-including savings accounts, 401(k)s and IRAs-can be registered, along with any debt being paid down. SaveUp includes a partnership with Intuit, which provides the same technology and security as sites such as TurboTax Online. Institutions can customize the site to their own preferences and messaging.
Users receive credits each time they pay down debt or save money, or when they utilize SaveUp's financial-education component. Those credits can then be used to win prizes such as gift cards or cash payouts, along with larger prizes, such as student loan payoffs (up to $25,000), $50,000 to start a business or career retraining, or the jackpot prize of $2 million. Prizes are funded via advertising and sponsorship revenues, and brands that include Virgin America, Best Buy and TurboTax are signed on as participants.
The Filene Research Institute has also partnered with SaveUp to help evaluate the efficacy of the pilot program.
Costs of the Program
The cost to participate in SaveUp varies on a sliding scale by a CU's membership size, but begin at $5,000 annually for unlimited users or $5 per user per year. Currently, discounts are being offered.
Since its launch in November, users have deposited more than $29.5 million in savings and paid down more than $25 million in debt. The program is free,
Participants in the pilot include Belvoir FCU, Xceed Financial, CU of the Rockies, Eli Lilly FCU, Frankenmuth CU, Arsenal CU, St. Mary's Bank, Northeast CU, Southwest FCU, GPO FCU, Oregon Employees FCU, Providence FCU, Neighborhood CU, Summit CU, and Fox Communities CU.
