Prize-linked savings account (original) (raw)

A prize-linked savings account or PLSA (also called a lottery-linked deposit account) is a savings account where some of the interest payment on bank deposits or marketing dollars are distributed as prizes based on chance. They are attractive to consumers as they function both as a sweepstakes or game of chance (as there is a chance of a large prize) and as savings vehicle (the deposit is never lost, unlike normal lotteries). PLSAs are similar to lottery bonds except they are offered by banks, credit unions, prepaid card companies, and financial technology companies, and can be held for a period of time determined by the consumer. Sometimes the returns are in-kind prizes rather than cash.