This will allow us to better serve our members and encourage them to get in the habit of saving.
November 10, 2017
Two propositions were passed in the recent Nov. 8 election that will help Neighborhood Credit Union and other financial institutions better serve their members.
One of the passed propositions, Proposition 7, will now allow financial institutions to offer prize-linked savings accounts in a raffle-style approach as a way to encourage savings. While Neighborhood CU has been offering its own Prize Savings Account for the past 10 years, it has been conducted in a sweepstakes-styled approach that severely limited the value of prizes that could be awarded.
With the addition of Proposition 7 to the Texas Constitution, Neighborhood CU will now be able to offer better prizes to further encourage good saving habits in the communities it serves. Currently the credit union rewards more than 2,400 of their members with over $100,000 in cash prizes each year.
Neighborhood Credit Union established the Prize Savings Account in 2007 to encourage people to save more money while having fun doing it, at a time when the personal savings rate had dropped to one of the lowest levels in U.S. history.
“This will allow us to better serve our members and encourage them to get in the habit of saving,” said Chet Kimmell, president of Neighborhood Credit Union. “Our members will earn a market rate of interest on their savings account while at the same time having a chance to win a fantastic cash prize. This is a great start as we begin to celebrate the 10 year anniversary of our Prize Savings Account.”
How the Prize Savings Account works: Neighborhood Credit Union members receive one drawing entry for every $25 monthly average balance in their Prize Savings Accounts. The greater the…