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

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

Businesses & Jobs

Housing & Homeownership

Health Care

Education

CFED Assets & Opportunity Scorecard

Prize-Linked Savings

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.

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Prize-Linked Savings

StateLegality of Prize-Linked Savings
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   
Idaho   
Illinois   
Indiana   
Iowa   1
Kansas   
Kentucky   
Louisiana   
Maine  Yes (legislation passed in 2010) 
Maryland  Yes (legislation passed in 2010) 
Massachusetts   
Michigan  Law already allows prize-linked savings 
Minnesota   
Mississippi   1
Missouri   
Montana   
Nebraska  Yes (legislation passed in 2011) 
Nevada   
New Hampshire   
New Jersey   
New Mexico  Existing laws may allow for prize-linked savings 1
New York   
North Carolina  Yes (legislation passed in 2011) 
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) 
West Virginia   
Wisconsin   
Wyoming   

Source

"Prize-Linked Savings: Policy Update 2011." Allston, MA: D2D Fund, 2011.

“Legislative Success.” Allston, MA: D2D Fund, 2011. Data accessed in November 2011 at www.d2dfund.org/Legislative_Success.

Footnotes

1. State introduced legislation in 2010 or 2011 session.

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