Delaware joins states allowing prize-linked savings accounts
DOVER, Del. (AP) – As if saving money wasn’t already a good idea, now it can help you win a prize.
Delaware Gov. John Carney is signing legislation authorizing the use of “prize-linked” savings accounts to promote financial frugality, especially among people with low incomes and first-time savers.
Under the bill being signed Tuesday, similar to laws in place in many other states, a deposit into the program makes the entrant eligible for a prize. The principal in the account remains untouched.
At the end of 2014, federal legislation was passed allowing federally charted banks and credit unions to offer prize-linked savings account if a state does not prohibit it.
This bill explicitly authorizes such programs in Delaware and clarifies that such programs do not constitute prohibited gambling or lottery practices.