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?
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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.