CONGRESSWOMAN ELISE STEFANIK
On Monday, September 15, 2014, the House will consider H.R. 3374, the American Savings Promotion Act, as amended, under a suspension of the rules. H.R. 3374 was introduced on October 29, 2013 by Rep. Derek Kilmer (D-WA) and referred to the Committee on Financial Services.
H.R. 3374 would enable financial institutions to offer savings promotion raffles by amending the National Bank Act, the Federal Reserve Act, the Federal Deposit Insurance Act, and the Home Owners’ Loan Act. In order to be considered a “savings promotion raffle,” the entry into the raffle must be limited to customers who make a minimum deposit into a savings account. Additionally, each entry must have an equal chance of being drawn. This legislation would also amend criminal money laundering statutes to exempt savings promotion raffles from prohibitions against interstate and foreign travel or transportation in aid of racketeering enterprises.
According to the findings made by Congress under this legislation, the annual savings rate in the U.S. was 4.1 percent in 2012, and “more than 40 percent of American households lack the savings to cover basic expenses for 3 months if an unexpected event leads to a loss of stable income.” Prize-linked savings products are typically savings products offered by financial institutions (e.g. savings accounts, certificates of deposit, and savings bonds) that also offer chances to win prizes based on deposit activity. In Michigan and Nebraska, where some of these products are available, 42,000 individuals have opened accounts and save over $72 million. These types of accounts have been successful in attracting non-savers, and encourage personal savings.
 See H.R. 3374
 See Id.
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A CBO cost estimate is currently unavailable.
For questions or further information contact the GOP Conference at 5-5107.