D2D Fund

Prize Linked Savings is a savings innovation. Prize linked savings products offer potential savers the chance to win a large prize based on the value of their savings deposits, linking the thrill of lottery or raffle play with a financial choice to save.

These products are popular abroad, but until recently have not been tested adequately in the U.S. (See Prize Linked Savings shows promise in the U.S. below)

D2D’s President, Peter Tufano has researched prized linked products internationally, complementing existing in-depth material.

D2D is particularly interested in the impact this type of product may have lower income consumers:

• will it lead them to save more?
• will it attract new consumers?
• will it attract new savers?

Prize Linked Savings shows promise in the U.S.

D2D worked with Indiana based Centra Credit Union to launch and study the first U.S. based prized-linked savings product beginning in late 2006. The Centra Super Savings Account offers holders a chance to win prizes each month, including laptop computers, mp3 players, gift cards, cash and more. Centra launched the project throughout its 22 branches on January 1, 2007, opened nearly 1,400 Super Savings Accounts and collected over a half million dollars in deposits in the first five months.

If even a small fraction of the $90 billion Americans lose in gambling each year could be diverted to saving, prize-linked products could have a significant impact on the amount Americans save each year.