Save Through a Credit Union, Hit the Lottery

While everybody who can count on their fingers knows that saving is a surer road to money than playing the lottery, the lure of the big score makes lotteries fat and savings slim. Often, savings institutions and their fees make savings an unattractive idea. But some credit unions in four states--Michigan, Nebraska, North Carolina and Washington--are offering savers in their credit unions the chance to have their savings cake, and eat some lottery winnings.

Here's how it works: if you start an account, you get a chance to win a lottery held at least once a year. The more you save, the more chances you get to win. You. get another "ticket" with each $25 in savings. So the more you save, the better your chances of winning.

Where are these.credit unions? Right now, they are in those four states and can be found in this directory. But there may be more in the future, since federal laws are allowing more states to create laws that enable "save to win" accounts. See if a nearby credit union offers this option.

A Linked Deposit Program for the Average Ohioan

Linked deposit programs are a common way for government treasuries to offer lower cost loans to businesses in their area. The treasurer's office of a city, county or state places certificates of deposit in a bank, and businesses who borrow money from that bank can obtain loans at reduced rates. For instance, the state of Ohio offers a GrowNow program in which loans to small businesses are reduced by 3% under what the bank would normally charge. The bank gets the state's CD, the borrowers get a cheaper loan, and the whole economy is happier. Lucas County, Ohio offers a similar program to businesses in that county.

Now average consumers in Ohio can take advantage of a linked deposit program to boost their savings. The SaveNow program was created to help people get a greater rate of savings on their deposits. It works the same way, but rather than cutting the rate on a loan, it boosts the savings rate by 3.25% over the bank's usual rate for one year if you put a savings deposit in a participating bank. In addition to committing the money over the course of one year, consumers must have financial literacy lessons (and who couldn't use them?). After a year, the savings revert to the bank's normal rate of return. There is no income limit on this, so it's available to everybody.

There's now an Ag-Link that does the same thing for farmers, and Eco-Link that allows you to save money when you borrow to make your home more energy-efficient.  If you're an Ohioan, there may be a linked deposit program to help you save or to borrow more cheaply.