CFED Scorecard

Financial Assets & Income

Outcome Measures

Income Poverty Rate

Asset Poverty Rate

Asset Poverty by Race

Asset Poverty by Gender

Asset Poverty by Family Structure

Liquid Asset Poverty Rate

Liquid Asset Poverty by Race

Liquid Asset Poverty by Gender

Liquid Asset Poverty by Family Structure

Extreme Asset Poverty Rate

Net Worth

Net Worth by Race

Net Worth by Income

Net Worth by Gender

Net Worth by Family Structure

Unbanked Households

Underbanked Households

Households with Savings Accounts

Consumers with Subprime Credit

Borrowers 90+ Days Overdue

Average Credit Card Debt

Bankruptcy Rate

Policy Priorities

Tax Credits for Working Families

State IDA Program Support

Lifting Asset Limits in Public Benefit Programs

Protections from Predatory Short-Term Loans

Additional Policies

Income Tax Threshold

Tax Burden by Income

Prize-Linked Savings

Paperless Payday

Trend Indicators

Change in Net Worth

Change in Asset Poverty

Change in Liquid Asset Poverty

Change in Consumers with Subprime Credit

Change in Average Credit Card Debt

Businesses & Jobs

Housing & Homeownership

Health Care

Education

CFED Assets & Opportunity Scorecard

Prize-Linked Savings

Reports & Graphics

Definition

States that allow financial institutions to offer prize-linked savings programs, 2012.

Description

Prize-linked savings (PLS) programs give savings accountholders the opportunity to win prizes when they make deposits. In these programs, financial institutions offer consumers a savings product with a low minimum balance requirement; accountholders make monthly deposits, which qualify them for monthly and/or annual drawings. The possibility of a prize encourages greater savings. Unlike gambling, however, no one loses from participation in a PLS program. Prize-linked savings programs focus on the entertainment value and fun of winning prizes, but without risking any principle and with the knowledge that one is building an asset. Not everyone “wins” one of the prizes, but everyone comes out ahead with increased savings.

To enable PLS programs, states need to ensure that banking and gaming regulations do not prevent financial institutions from holding private lotteries. In some states, laws already allow savings promotions. States where PLS is not legal can enact legislation that exempts financial institutions from regulations.

For more information about prize-linked savings, visit D2D Fund's website and see their recent report Playing the Savings Game: A Prize-Linked Savings Report.

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Prize-Linked Savings

StateLegality of Prize-Linked SavingsProgram Implementation
Alabama     
Alaska  Existing laws may allow for prize-linked savings   
Arizona  Existing laws may allow for prize-linked savings   
Arkansas   1  
California     
Colorado     
Connecticut     
Delaware     
District of Columbia     
Florida     
Georgia  Existing laws may allow for prize-linked savings   
Hawaii   2  
Idaho     
Illinois     
Indiana     
Iowa   1  
Kansas     
Kentucky     
Louisiana     
Maine  Yes (legislation passed in 2010)   
Maryland  Yes (legislation passed in 2012)  Program in planning stages 
Massachusetts     
Michigan  Law already allows prize-linked savings  Program has been implemented 
Minnesota     
Mississippi   1  
Missouri     
Montana     
Nebraska  Yes (legislation passed in 2011)  Program has been implemented 
Nevada     
New Hampshire     
New Jersey     
New Mexico  Existing laws may allow for prize-linked savings 1  
New York   2  
North Carolina  Yes (legislation passed in 2011)  Program has been implemented 
North Dakota     
Ohio     
Oklahoma     
Oregon     
Pennsylvania     
Rhode Island  Yes (legislation passed in 2010)   
South Carolina     
South Dakota     
Tennessee     
Texas     
Utah     
Vermont     
Virginia     
Washington  Yes (legislation passed in 2011)  Program in planning stages 
West Virginia     
Wisconsin     
Wyoming     

Source

“Legislative Success.” Allston, MA: D2D Fund, 2012. Data accessed in November 2012 at http://www.d2dfund.org/Legislative_Success. Data also provided through email correspondence with the D2D Fund in November 2012. CFED thanks Joanna Smith-Ramani for her assistance in developing and reviewing this data.

Footnotes

1. State introduced legislation in 2010 or 2011 session.

2. State introduced legislation in 2012 session.

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