BankFive is the first bank to offer a prize-linked savings account in the state of Massachusetts. Prize-linked savings is the concept of using the chance to win a prize to incentivize personal savings. The Lucky Piggy Savings Account at BankFive helps make the act of saving money exciting through the possibility of winning monthly cash prizes.
In 2017, the Federal Reserve found that nearly 4 out of 10 adults were unable to cover a $400 unplanned expense without borrowing money or selling something. (“Attacking the ‘$400 problem’ on many fronts”) According to Prosperity Now’s Scorecard, 35.3% of Massachusetts, households are living in liquid asset poverty, meaning they do not have enough liquid savings to cover three months’ expenses if they were to lose their job.
With BankFive’s Lucky Piggy Savings, account holders earn one entry per drawing for each $25 deposit increase in their month-end balance (excluding the amount of any monthly or annual prizes). One $500 cash prize is drawn each month and the annual prize is a $1000 cash prize drawn in January each year. The cash prize is automatically deposited into the customer’s account. Savers are allowed one penalty-free withdrawal per month. A $5 withdrawal service charge applies to second and third withdrawals. Upon the fourth withdrawal, the account will be converted to a statement savings account.
“Over the last two years, I’ve participated in ongoing Savings Innovation Convenings held by Federal Reserve Bank of Boston and Commonwealth, a Boston-based nonprofit committed to expanding financial security, to discuss how financial institutions can mitigate the $400 issue, 40% of Americans, regardless of income, do not have $400 saved for an emergency,” said Catherine Dillon, BankFive’s SVP, Director of Marketing, Sales, and Business Development. “Managing finances and saving for the future can be daunting. The Lucky Piggy, prize-linked savings account, is a fun way to help our customers build savings. Helping our neighbors with their financial well-being is true to BankFive’s mission.”
Lucky Piggy Savings accounts can be opened at any BankFive branch or online at bankfive.com/luckypiggy.
Since 1855, BankFive has been serving the communities of the SouthCoast with a steadfast commitment to provide local individuals, families and businesses with outstanding products and services designed to meet their financial needs. With 15 offices conveniently located throughout the SouthCoast, BankFive is one of the top regional banks in Massachusetts. For more information, go to www.bankfive.com.