New legislation passes, Save To Win program to launch October 1
GREENVILLE, SC — Starting on October 1, 2016, SC Telco Federal Credit Union will be the first financial institution in South Carolina to offer Save To Win, an exciting new savings program that allows members to save money and earn interest while also getting the chance to win even more money.
“We’re excited to be the first Credit Union in the state to offer this to our 50,000 members,” said SC Telco Federal Credit union President/CEO Steve Harkins. “We fought hard for the passing of this legislation because our mission is to improve the financial lives of our members. Save to Win not only makes saving money fun, but we believe helps in perhaps re-shaping the get-rich-quick mentality associated with lotteries and helps families develop solid, steady long-term approaches to financial security and freedom.”
Save To Win is a multi-state initiative created to encourage savings particularly among low- and moderate-income families. The concept is simple: Open a Save To Win 12-month share certificate for as little as $25 to be entered into the drawing. For every $25 a member deposits, the member receives another entry into the drawing (up to 10 entries per month). Members earn competitive interest rates on deposits and also are entered into multi-state drawings where one of 140 credit union members across participating states can win a $25 monthly prize, and one of 20 members of credit unions across multiple states win a quarterly prize ranging from $500 to $5,000.
“I applaud our state’s Credit Union leadership for working with us to develop the Save to Win legislation this past session,” said Senator Larry Martin, who introduced the legislation into session in 2016. “Increasing our savings rate is important, and this program is another way to encourage putting some money back for a rainy day.”
South Carolina becomes one of the initial ten states to launch the program. In the spring of 2008, Doorways to Dreams (D2D) in Boston, MA was awarded a grant from the Center for Financial Services Innovation in Chicago, IL, to study the viability of an innovative prize-linked savings product in the United States. Michigan was sought out as the first state because of an existing law in the MCUA that allowed Michigan credit unions to promote prize-linked savings products. The partnership expanded to include the Filene Research Institute, the Michigan Credit Union League & Affiliates (MCUL) and eight credit unions in Michigan who worked together to create and launch Save to Win in Michigan in 2009, opening more than 11,000 accounts and helping people save $8.5M in the first year. Credit unions in Connecticut, Michigan, Nebraska and Virginia combined their resources to promote the first ever, large scale multi-state prize linked savings program in 2015. North Carolina, Indiana, Illinois and Oregon joined the multi-state program in 2016, totaling eight states on the national program. Washington and New York are operating single state programs due to restrictive state laws that prevent them from participating in the national model.
The national model is a credit union funded program and the combined resources allows for more prizes to be awarded than with past models. The national program also allows the central prize pool to grow as new credit unions sign on throughout the year.
SC Telco will begin offering Save To Win accounts October 1. Visit www.SCTelco.com/save-to-win/ for more information, additional savings tips and resources.
*SC Telco Federal Credit Union was chartered in 1935 as a not-for-profit financial cooperative, and today has over 50,000 members and $300 million in assets. Headquartered in Greenville, South Carolina the credit union’s footprint spans the Upstate and Midlands of South Carolina with branches in Greenville, Taylors, Easley, Spartanburg, and Columbia.