Kutak Rock attorney Jeff Makovicka authored the article “Should Lotto Be Your Motto? Incentivizing Deposits in a Markedly Different Way” in the November/December 2015 issue of Nebraska Banker.

In the article Makovicka discusses Prize Linked Savings Accounts, which pay certain depositors using a lottery-like drawing where depositors' chances of winning are proportional to their account balances. The idea behind this type of account is to leverage the appeal of lottery-type winnings to induce people to invest in savings products offering a positive expected return.

Makovicka explains that though Prize Linked Savings Accounts are becoming more commonly used, there are many factors to consider before using such an account. 

The article appears as the Counselor's Corner feature and can be read in its entirety by clicking on the Related File below. 

Nebraska Banker is the official publication of the Nebraska Bankers Association.

Makovicka, a partner in the firm’s Omaha office, counsels public and private companies in connection with regulatory compliance mergers and acquisitions, and corporate governance. His practice concentrates on banking matters and he represents banking and other financial institutions and their boards of directors on the strategic policy and regulatory aspects of mergers and acquisitions, joint ventures, establishing subsidiaries, capital raises, restructuring transactions, and investments by and in banking organizations.