Lure of winning prizes encourages saving, researchers find

8 septiembre 2015

People are more willing to save money when offered the chance to win a prize, according to a study. The research examined Prize Linked Savings (PLS) products, and states that a PLS savings account adds a randomly determined element to an otherwise standard savings account. Instead of receiving a typical fixed-interest rate, depositors periodically receive a chance to win a specified, and potentially large, prize in accordance with their deposit amounts — i.e., larger deposits means a higher chance of winning.