CD rates Blog

Finance Blogs » CD rates » CD or lottery ticket?

CD or lottery ticket?

By Sheyna Steiner · Bankrate.com
Wednesday, April 3, 2013
Posted: 5 pm ET

Would you rather buy a lottery ticket or save those dollars in a certificate of deposit? Washington credit unions are betting that more people would enjoy saving if they had a chance to win prizes, The Seattle Times reported March 30.

From the story "Washington credit unions try can't lose lottery:"

The "Save to Win" plan promises monthly and annual drawings for cash prizes, with one entry ticket issued for each $25 deposit made into a 12-month certificate of deposit.

With CD rates as low as they are, credit unions need creative ways of attracting deposits. According to the story, the program has been successful in Michigan, where the lottery plan debuted. The state now boasts 12,000 participants in Save to Win. Two other states have passed legislation allowing prize-linked savings accounts -- Nebraska and North Carolina, the Credit Union Times reported last week.

How about you? Would you consider a credit union if you were offered a chance a prizes?

Follow me on Twitter: @SheynaSteiner

***
Senior investing reporter Sheyna Steiner is a co-author of "Future Millionaires' Guidebook," an e-book written by Bankrate editors and reporters. It's available at all the major e-book retailers.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.