South Carolina Code 34-45-10. Legislative findings
(1) Savings promotion contests encourage people to save money by adding a feature to personal savings accounts that include a chance to win prizes.
Terms Used In South Carolina Code 34-45-10
- Qualifying account: means :
(a) a savings account or other savings product or program offered by a participating financial institution into which deposits may be made by a depositor;
(b) the account is evidenced by periodic statements that are delivered to the depositor or are available to the depositor through electronic access; and
(c) the interest rate for the qualifying account is similar to, and not less than, the interest rates of other comparable nonqualifying accounts. See South Carolina Code 34-45-20 - Savings promotion contest: means a contest or promotion sponsored by a financial institution or a group of financial institutions in which a chance of winning designated prizes is obtained by a depositor when the depositor:
(a) deposits a specified amount of money or makes a specified number of deposits into the depositor's qualifying account; or
(b) participates in one or more savings products or programs. See South Carolina Code 34-45-20
(2) 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 or other qualifying account.
(3) The prizes are funded through the interest that accrues across the pool of savings accounts participating in a savings promotion contest.
(4) Federal law allows both depository financial institutions and credit unions to hold savings promotion contests, subject to certain conditions and authorization under state law.
(5) Savings promotion contests in other states and countries have led to an increase in the number and amount of funds in personal savings accounts.
(6) It is in the best interest of the citizens of South Carolina to encourage increases in personal savings accounts.