Forget about earning interest on your savings. Prize Linked Savings Account allows you to win hefty prizes just as you save. Although they have gained popularity in the US for over a decade now, it is slowly venturing into other parts of the world in various forms.
How does Prize-Linked Savings Account work?
In a PLSA, customers deposit money into a savings account just like they would with a traditional savings account. However, instead of earning a fixed interest rate, the interest rate varies and is linked to the number of entries in a prize drawing.
Each time a customer deposits in the Prize Linked Savings Account, they receive one or more entries into a monthly or quarterly drawing for a cash prize or other reward. The more money a customer saves, the more entries they receive and the higher their chances of winning.
Prize Linked Savings Account are typically offered by credit unions or other financial institutions as a way to incentivize savings among their members. The prize funds are often funded by the financial institution or through partnerships with sponsors.
What are the benefits of a Prize-Linked Savings Account?
It is very evident. One of the main benefits of Prize Linked Savings Account is that they help people who don’t have a lot of extra money to save and still have the motivation to save. By offering the chance to win a prize, PLSAs can make saving money more fun and rewarding.
Another benefit of Prize Linked Savings Account is that it can help people who may not have a lot of financial knowledge. By participating in a PLSA, people can learn about the importance of saving money and how interest rates work.
PLSAs can also benefit the financial institution that offers them. By offering a PLSA, the institution can attract new customers and encourage existing customers to save more money.
To open a prize-linked savings account, you typically need to follow these steps:
- Research and choose a financial institution that offers prize-linked savings accounts. Some popular options include credit unions, community banks, and online banks.
- Review the account terms and conditions to make sure you understand the rules, fees, and eligibility requirements. These accounts often require a minimum balance or minimum deposit to open, and there may be limits on how many entries you can to earn prizes
- Complete the account application process. This may involve filling out an online form, visiting a branch in person, or speaking with a representative over the phone.
- Fund the account. You’ll need to deposit money into the account to start earning entries for the prize drawings. Some accounts may allow you to set up automatic deposits or transfers from other accounts to make it easier to save regularly.
- Start earning entries for prizes. Each deposit or other qualifying activity (such as completing financial education courses) may earn you entries for prize drawings. Check the account terms to see how often drawings are held and how prizes are awarded.
It is a thin line out here when it comes to the game of chance that comes with a bumper prize. On one side, it is actually a lottery. While on the other hand, you also get to save your money which makes you eligible to win the prize.
Prize Linked Savings in India
So, Prize Linked Savings is a win-win concept, unlike the lottery. But the catch is, this concept is fairly new in India and no institution offers the Prize Linked Savings Scheme, except Fello.
Fello is a game-based investment platform. You can save, play and win exciting rewards. On the other hand, Fello offers Prize Linked Savings via the game of Tambola. All you need to do is save in Fello assets, and in return, you not only grow your savings with the market rate, but you also get Tambola tickets.
With the Tambola ticket earned, you get to play Tambola every day. And if you are the lucky one, you win ₹1 Crore! If not, you still have the money you invested which constantly grows.
Get started with Fello now and you get to experience the benefits of Prize Linked Savings.
