The New York Credit Union Association’s statewide Lucky Savers program is reaching many first-time savers and “financially vulnerable” New Yorkers, according to the latest report on the program from Commonwealth. The report includes analysis of 721 Lucky Savers accountholders who were asked to complete a survey after their opening their Lucky Savers certificate.
The following statistics represent key findings from the report:
- 76 percent of respondents meet the basic definition of financial vulnerability, which is characterized by having low-middle income, no regular savings or few liquid assets;
- 83 percent of participants did not have a share certificate or CD prior to participating in Lucky Savers, and 60 percent of participants have never had one;
- 60 percent of all respondents at the time did not have emergency savings for 3 months of expenses;
- 81 percent of respondents said Lucky Savers makes them more excited about their credit union;
- 62 percent of participants said that building their savings would make them more likely to use other financial products at the credit union; and
- 11 percent of respondents said they joined the credit union for the Lucky Savers account.
A Lucky Savers account is a 12-month share certificate with unlimited deposit capabilities, and members can open the account with a $25 deposit. For every $25 in month-over-month balance increases, accountholders earn one entry into the monthly and quarterly cash-prize drawings. Interest and account value caps are set by each participating credit union, with a maximum of 10 prize-drawing entries per member, per month.
Since launching in October 2015, Lucky Savers participants have saved more than $12 million, with account balances averaging $2,400.
As previously reported in The Point, enrollment is now open for Lucky Savers. Credit unions that are new to the program will need to fully execute a contract and provide all required implementation documents to the New York Credit Union Association by Aug. 31 in order to start their program on Oct. 1.