[private]Banks and credit unions would be allowed to attract depositors by holding “savings promotion raffles” similar to the state lottery under legislation (SB 134) sponsored by Senate President Pro Tem David Shafer.
Shafer said he introduced the “Save Earn Win Act” in an effort to encourage more people to save money.
“Our country is facing a crisis and we have stopped saving,” Shafer said. “Most Americans are living paycheck to paycheck and do not have enough to pay for a $400 emergency.”
Other states have similar laws that allow savings institutions to hold promotional giveaways through raffle tickets issued to persons who deposit a specified amount of money into a savings account.
Part of the money deposited goes to the raffle pool, but a portion also remains in the savings account. If a depositor does not win the raffle, they still have the money in their savings account.
SB 134 would authorize these prize-linked savings accounts, which could be interest bearing or non-interest bearing. Financial institutions could set up their raffle as they wish.
© 2017 by The Georgia Report