Lucky Lagniappe Savings

Transcription

1 Lucky Lagniappe Savings Prduct Prfile Prize-Linked Savings Accunt Prgram Lucky Lagniappe Savings Prduct Descriptin The Luisiana Credit Unin League (LCUL) ffers a Prize-Linked Savings (PLS) Prgram that facilitates a state-wide prize pl that participating Luisiana credit unins members may qualify fr entry thrugh savings. Thrugh a vendr partnership with the Minnesta Credit Unin Netwrk (MnCUN), MnCUN will aggregate the entries frm the credit unins, verify base qualificatin data fr each f the member entries, and facilitate peridic prize drawings t award cash prizes t the winning member(s). LCUL will maintain cntrl f the state-wide prize pl, and administer transfer f prize winnings frm the prize pl t the apprpriate credit unin. Value Prpsitin Prize-Linked Savings is a cncept that mixes savings balances earning interest with the chance t win additinal cash prizes, prviding additinal incentives t save. Target Market PLS is designed t appeal t lw t mderate incme individuals, as well as nn-savers, but all members are eligible t participate. Participating credit unins must be a member f the League and headquartered in Luisiana. Benefits Missin Supprts credit unin missin t serve financially vulnerable members wh have the hardest time saving New Members An estimated 10% f all PLS participants are new members, plus added benefit f increased depsits Crss-Selling Opprtunities An estimated tw-third f PLS participants say they are mre likely t use ther credit unin prducts Increased Member Satisfactin

2 Rll-ut Credit Unins will be able t start accepting member depsits n r after January 1, 2018 fr the 2018 state-wide prize pl year. Prduct Features (standard) Traditinal Savings Accunt (restricted, w/cd qualities like a hliday club accunt) Opening depsit minimum f $5 required Unlimited depsits allwed Interest Rates TBD by each credit unin Qualifying entry amunt = $20 mnth-ver-mnth balance increase Max number f ttal entries in state-wide drawing: Max number f ttal entries (per mnth) in state-wide drawing = 5 ($100) Max number f ttal entries (per mnth) in credit unin member-nly drawing = 5 ($100) Max number f ttal entries (per quarter) in state-wide drawing = 15 ($300) Max number f ttal entries (per quarter) credit unin member-nly drawing = 15 ($300) Max number f ttal entries (per year) in state-wide drawing = 60 ($1200) Max number f ttal entries (per year) in credit unin member-nly drawing = 60 ($1200) Limited t 1 cnsumer accunt per persn (r jint membership accunt, with primary accunt hlder receiving entry) per participating credit unin. An accunt hlder is nly eligible t win nce per state-wide drawing pl; fr example, an accunt hlder, regardless f the number f entries, may nly win ne mnthly state-wide drawing per mnth, and ne quarterly state-wide drawing per quarter.

3 Accunt Hlder Requirements At least ne accunt hlder must be 18 years f age r lder, OR an individual minr may hld an accunt w/parental agreement t participate. Must be a member in gd standing t be determined by individual credit unin. Accunt must be pen and active t win at the time the drawing is cnducted. All earned entries at the time f accunt clsure are frfeited. Credit Unin Emplyees/Bard members/family/spuses may participate. Business and trust accunts, r ther nn-cnsumer accunts, are nt eligible. Withdrawal Limits Maximum f tw withdrawals per twelve-mnth perid. A third withdrawal per twelve-mnth perid requires accunt clsure, withut penalty. An accunt may be clsed at any time, withut penalty, hwever all earned entries are subsequently frfeited. If an accunt is clsed, the cnsumer is ineligible t pen anther Lucky Lagniappe accunt at the same credit unin fr a perid f 90 days and all entries earned up until that pint are als frfeited upn clsure. An accunt may be clsed at any time, withut penalty, hwever all earned entries are subsequently frfeited. Early withdrawal fees First withdrawal = $10 Secnd withdrawal = $25 Third Withdrawal = accunt clsure is required (n penalty); all entries frfeited Nte: all fee incme is the prperty f the individual credit unin

4 After 12 mnths f savings rllver (accunt) r maturity (CD) Prizes and Prize Pl Allw rllver t traditinal CD savings prduct at the same credit unin at the end f the 12- mnth anniversary savings date, withut penalty. After a cnsumer has reached their 12-mnth anniversary date frm accunt pening, the cnsumer is permitted t make ne penalty-free withdrawal frm the accunt during the anniversary mnth. Fr example, if smene pens an accunt January 13, 2018, they have all f January 2019 t exercise their ne time, penalty-free withdrawal. After 12 cnsecutive mnths f savings, the accunt will autmatically rll-ver t a new savings perid. As a reward fr saving, the balance will als re-set t zer at the beginning f the new prgram savings perid. The cnsumer will earn entries in the first mnth f the new savings cycle based n the current new balance. Fr example, if smene has a $100 balance in their PLS accunt at the end f their 12-mnth anniversary and they chse t cntinue t save funds in their PLS accunt, they will have already earned their 4 qualifying entries fr the upcming mnth s drawing. The fllwing prizes and prize pl will be fr the Luisiana state-wide drawings. We estimate that apprximately $70,000 in prizes will be distributed during the entirety f 2018, subject t anticipated participatin by credit unins. As the prize pl increases, the number f drawings will als increase. Drawings will ccur n r abut the 15 th f each mnth, r the next business day, fr the previus mnth, and/r quarter end, and/r year end. The number f prizes, prize denminatins, and prize pl are dependent upn the ttal participatin by credit unins, and are subject t change in the sle discretin f LCUL. Luisiana State Drawings (apprximate and anticipated): 40 mnthly drawings f $100 each 4 drawings per calendar quarter f $1,000 each 1 special drawing in hnr f Ed Price f $1,000 1 annual Grand Prize drawing f $5,000

5 Credit Unin specific Drawings: Individual credit unins will als be permitted t create credit unin specific member drawings as well. The nly requirements are: Credit unins will have the ptin t hld mnthly, quarterly, and/r a Grand Prize (annual) drawing. Credit unins may als elect t have ne special drawing that is required t be apprved and scheduled at least 45 days in advance that cincides with the existing prize drawing schedule. Additinal details are prvided in a special prize electin frm. Credit unins may chse the number f winners allcated fr each drawing, hwever drawings must be f the same denminatin r value chsen by the credit unin. Fr example, if a credit unin chses t have 3 mnthly winners, all 3 must receive the same prize denminatin r value. An accunt hlder is nly eligible t win nce per member-nly drawing pl. The annual and/r Grand Prize cash drawing will select ne winner Currently, ur system des nt allw fr exclusin fr Credit Unin Emplyees/family/spuses/bard members in the credit-unin specific drawing. Cntributin & Prgram fee The Prgram fee encmpasses all administrative, peratinal, and technlgical cst. This fee is $850 annual in additin t the credit unin s cntributin t the prize pl. A credit unin s prize pl cntributin will be based n asset size as reflected in the mst recent Call Reprt, and will be adjusted annually. Please see the cntributin schedule belw. Credit Unins will be inviced fllwing executin f the cntract t participate in the prgram, and payment will be due prir t credit unins ffering f accunts.

6 Annual Cntributin t Prize Pl Assets Prize Cntributin <$10M $500 $10 - $29M $750 $30 - $59M $1,000 $60 - $99M $2,500 $100 - $199M $3,500 $200 - $350M $5,000 $351 - $499M $6,500 $500 - $749M $7,500 $750 - $999M $8,500 >$1B $9,500 This infrmatin is the prperty f the Luisiana Credit Unin League, and is being prvided slely fr the benefit f LCUL and its member credit unins, in cnsideratin fr utilizing ur prize-linked savings accunt prduct prgram, and may nt be prvided t r used by third parties withut express permissin Luisiana Credit Unin League