One of our local branches is wanting to drum up business and has decided to offer a chance to win one of 6 prizes ranging in value from $25 to $200. In order to be entered to win you must open a cd, savings, OR checking account. I know that the winners would have to get 1099s at year end, and I know that we would have to create a special disclosure detailing all of the particulars (length of time account must be opened, early closure costs, etc.,). What else am I missing? I do not like these promotions but at least they asked before they printed the flyers this time. Lol

In order to be entered to win you must open a cd, savings, OR checking account.

Banks are not allowed to conduct or participate in lotteries.

That's what I feared. So it is everyone that gets it, or no one that gets it, correct?

It has to be open to the general public and without consideration for entering.

OK. Thank you very much for the info. I will tell them to go back to the drawing board.

another idea: If you are trying to build market share around a specific branch suppose you ask those who live within a 5 mile radius to drop into the branch, register for a prize, have your drawing and the winner(s) must come to the branch to pickup the prize. In my experience one of the valuable keys to success is showing 'non-customers' how easy it is to visit the branch. Your mailing should target non-customers but of course anyone can enter the contest without having to open any account. Convenience is still a big reason to bank with someone....just a thought.