As more Americans are living paycheck to paycheck, it’s no wonder most of us have trouble saving for the future.
While we should put money away each month, traditional banking doesn’t give us much incentive. According to the FDIC, the average savings interest rates are 0.17%. Considering that we’re experiencing earth shattering record inflation of nearly 10% in 2022 alone, you actually end up losing money in the long term. So, unless you can find a way to earn interest on your money that’s equal to inflation without risk, you’ll need to find the highest interest savings account available to keep up.
So, are there any better ways to save your money?
Prize-linked savings accounts like Yotta or PrizePool can be the perfect alternative. Besides having generous interest rates, they offer excellent monthly rewards that encourage you to save each month. Let’s talk about both products and how they work.
How Do Prize-Linked Savings Accounts Work?
Before we talk about the main differences between the two platforms, you need to understand how exactly they can help you become a master saver. We also have an in-depth guide that walks you through prize-linked savings accounts, so we’ll only be covering the basics here.
Prize-linked savings accounts have existed in other countries, mainly based on a premium bond model. Lucky members would win extra interest via the bank’s lottery system when signing up for these special bank accounts.
Like the regular lottery, winning isn’t completely guaranteed. But if you do, you can win generous cash rewards at the end of each drawing. It’s a win-win scenario that makes saving fun. Prize-linked savings accounts are also FDIC-insured, which means your money is completely protected up to $250,000, so you have nothing to lose!
What Is Yotta?
Yotta is one of the largest prize-linked savings accounts on the US market. Co-founded by Adam Moelis, this platform was created to redefine what it means to manage your finances by using a no-loss lottery system when you bank with them. With every $25 you save, you have a chance to win different prizes, including a Tesla! Find out if you’re the lucky winner every Sunday at 9PM EST.
What Are The Main Benefits Of Using Yotta?
- Get 1 lottery ticket for every $25 you save in your account every week.
- The chance to win up to $10 million in rewards by saving money in your account.
- Get paid up to two days early and get extra bonus tickets on all of your paychecks.
- Earn an APY of 0.40%, two times as much as a traditional savings account.
- The account is easy to use, and you can get started with an account in just a few minutes.
If you love playing the lottery and the idea of winning big, Yotta gives you a chance to do this while managing your finances and actually ensuring a brighter financial future for yourself and your family. Thousands of people who use the app enjoy it and have left raving reviews on both the App Store and the Google Play Store. Check out one glowing review below:
“Have been using Yotta for about 2 months now. Transferring funds into and out of the account is super easy. The interface is intuitive and simple. Playing the lottery every week has been fun, and I’ve definitely earned more than a traditional bank savings account. Really no issues, definitely recommend!” says Joe Parisi, a happy Yotta customer.
What Is PrizePool?
PrizePool is another large prized-linked savings account platform founded by Franki Chien and Joe Woo in 2019. Like Yotta, this platform uses a rewards-based system to motivate you to save. With every $1 you save, you have a chance to win real cash prizes sent automatically to your account. Winning numbers are announced weekly, and you can win one reward per drawing.
What Are The Main Benefits Of Using PrizePool?
- Get 1 lottery ticket for every $1 you save in your account each week.
- Win up to 6,000 cash prizes, including a monthly grand prize of $10,000, simply by saving money in your account.
- Get an APY of 0.30%, which is well above that of traditional banks.
- PrizePool has an easy sign-up and verification process.
If you want a higher chance of winning something small, PrizePool is the right platform for you. Many users enjoy their experience saving with the app and have left positive reviews on both the App Store and the Google Play Store.
“The great thing about this app is that it’s like playing the lottery without having to lose any money in the process. Even if you don’t win a prize in a given week, you still get a savings bonus,” says Kosal, a satisfied PrizePool customer.
What Do Yotta And PrizePool Have In Common?
While both have slight differences, they’re both reliable apps, and many users are satisfied with their experience on both platforms. They also share some standard features like:
- FDIC-insured for up to $250,000.
- Include a fun lottery system to motivate you to manage your savings better.
- Both have a debit card where you can increase your rewards and earn more tickets.
The choice comes down to you and which platform you think you’ll enjoy better. In either case, both offer you a much better deal than traditional banks!
The Bottom Line
No matter which one you choose, both Yotta and PrizePool have their pluses and minuses you need to consider before signing up. As prize-linked savings accounts become more common, expect to see better features to motivate users to manage their money.
If you’re more interested in small prizes but want a higher chance of winning something, go for PrizePool. But if the higher stakes of winning $10 million are your thing, Yotta is the perfect chance to make it happen. Whatever you choose, you’ll win and save some money in the process!