Making Savers Winners: An Overview of Prize-Linked Saving Products

Melissa S. Kearney*, Peter Tufano, Jonathan Guryan, Erik Hurst

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapter

13 Scopus citations


For over three centuries and throughout the globe, people have enthusiastically bought savings products that incorporate lottery elements. In lieu of paying traditional interest to all investors proportional to their balances, these prize-linked savings (PLS) accounts distribute periodic sizeable payments to some investors using a lottery-like drawing where an investor's chances of winning are proportional to one's account balances. This paper describes these products, provides examples of their use, argues for their potential popularity in the United States - especially to low and moderate income nonsavers - and discusses the laws and regulations in the United States that largely prohibit their issuance.

Original languageEnglish (US)
Title of host publicationFinancial Literacy
Subtitle of host publicationImplications for Retirement Security and the Financial Marketplace
PublisherOxford University Press
ISBN (Electronic)9780191732089
ISBN (Print)9780199696819
StatePublished - Oct 27 2011


  • Accounts
  • Gambling
  • Households
  • Income
  • Investment
  • Lottery
  • Prize
  • Products
  • Saving

ASJC Scopus subject areas

  • General Business, Management and Accounting


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