Delawareans who want to save money will have access to new rewards. Gov. John Carney signed a bill into law on May 2, allowing financial institutions to offer cash prizes to savers who make regular deposits into their accounts. Del-One Federal Credit Union will launch a prized-linked savings program throughout its 10 branches across the state. Savers will start out with a small deposit into a savings account; each time they add to it, their chances to win one of many cash prizes increases. With each deposit, account holders will be entered into the pool to win — likening it to buying a ticket for a raffle. As the number of deposits increases, so do the chances of winning. Del-One’s prize-linked savings program will benefit Delaware residents, as all prizes will be awarded within the state of Delaware.
The bill signing was held at the Del-One Federal Credit Union branch at 150 E. Water Street in Dover.
“Delawareans across all income levels are facing a significant level of financial volatility and come up $1,800 short when faced with a large, unexpected expense,” said Gov. John Carney. “This program is a great way to save and possibly get rewarded with a cash prize for doing so.”
Delaware will become the 15th state to launch this “prize-linked savings” program and the 22nd state to pass legislation allowing financial institutions to participate.
Dion Williams, Del-One president and Chief Executive Officer, is excited that Del-One will be the first financial institution in Delaware to offer the program. “We are thrilled to offer this enticing savings program to all Delawareans and to join our colleagues across the country that have done so much to boost savings rates in their communities,” Williams said. The program is currently in development, and the opening date will be announced on Del-One’s website, www.del-one.org.
In Michigan where the program started in 2009, 60,000 people have saved over $140 million with an average account balance of $2,000.
$tand By Me, a statewide financial empowerment partnership administered by the DE Department of Health and Social Services and United Way of Delaware is supporting this effort as part of its work to increase financial well-being for all Delawareans. Michelle Taylor, President and Chief Executive Officer of United Way, said the program will offer an added incentive for Delawareans to build their savings.
“We all need a financial cushion to help us weather the unexpected demands of life. This savings program will make it easier and potentially more rewarding for people to build that nest egg,” Taylor said.
$tand By Me customers Shameka and Jarad Spencer have recently started to save more each month to support their goal of homeownership.
“Saving isn’t easy, but we know it’s the only way to get what we want, so we’re willing to make that sacrifice,” Shamica Spencer said. “And as long as we’re already saving, why not participate in this program to make it more entertaining and enjoyable?”
Information will be available at www.del-one.org or www.standbymede.org/save.
Del-One Federal Credit Union is $420 million in assets with 10 full service branch locations and over 55,000 members. Del-One has been recognized as a Top Workplace and Delaware’s Best Credit Union for the past five years.
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