The Legislature finds and declares the following:
(1) Federal law allows both depository financial institutions and credit unions to hold savings promotion contests, subject to certain conditions and authorization under state law.
(2) Savings promotion contests in other states and countries have led to an increase in the number and amount of funds in personal savings accounts.
(3) Savings promotion contests encourage people to save money by adding a feature to personal savings accounts that includes a chance to win prizes.
(4) Savings promotion contests are not lotteries because they do not require individuals to pay consideration for a chance to win a prize, and the individual maintains ownership of the money that is deposited into a savings account or other qualifying account.
(5) The prizes are funded through the interest that accrues across the pool of savings accounts participating in the promotion contest.
(6) It is in the best interest of the citizens of Alabama to encourage increases in personal savings accounts.
Last modified: May 3, 2021