Saving for a Chance to Win

By Heather Morton
January 2012

National savings rates have been creeping higher—from below zero in 2005 up to 5 percent in July 2011—with more consumers saving as rainy days continue. Money managers recommend consumers have at least three to six months of mandatory expenses saved in case of an emergency.

To encourage people to save, a few financial institutions have been offering prizes with savings programs to test whether a chance to win will motivate consumers.

The idea is spreading. Since 2009, lawmakers in six states—Maine, Maryland, Nebraska, North Carolina, Rhode Island and Washington—have passed laws to allow credit unions and other financial institutions to hold promotional savings raffles.

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