Massachusetts Governor Charlie Baker signed a bill on October 14, 2016 permitting Prize-Linked Savings (PLS) in the state. The bill, which will go into effect in January 2017, permits banks and credit unions to offer savings promotions raffles. PLS accounts incentivize savings by offering a chance at a cash prize.
PLS accounts were first piloted by Commonwealth, in collaboration with credit unions, in the US in 2009. They are currently offered in 12 states and have fostered over $145 million in savings for 64,000 account holders. Commonwealth research has shown that PLS accounts make a positive impact on saving behavior and act as a tool to improve how account holders think about their money and inspires them to engage in positive financial behaviors. Legalizing such accounts is a step towards building financial security and opportunity for all Americans.
We’d like to thank Senator Benjamin Downing and his staff, who introduced the bill in January 2015 and have worked with us since to get it passed. Other Senators who sponsored the bill and played a part in its signing include Eileen M. Donoghue, Chris Walsh, Denise Provost, and Marjorie C. Decker. More information about the bill, including history and full text, is available on the Massachusetts legislature website. We also would like to thank our community partners who supported the bill including the Massachusetts Bankers Association and the MIDAS Collaborative, amongst others.
See an infographic of the history of PLS in the US.
Read about the success of the Save To Win and WINcentive products.