Managing Money In A Crisis
Weekly tips sent straight to your inbox
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.
Yotta Savings account review
Last updated:
This new app rewards lucky savers with cash prizes, but is it too good to be true?
Yotta combines features of a standard savings account with a sweepstakes lottery system that rewards you with cash prizes as long as you pick the week’s winning numbers. But its APY is at a low 0.2%. Unless you win a large cash prize, you’ll earn more elsewhere.0.20%
APY
$0
Fee
$0
Minimum deposit to open
Details
| APY | 0.20% |
|---|---|
| Fee | $0 |
| Minimum deposit to open | $0 |
| Minimum balance to earn interest | $0 |
| Interest compounding | Daily |
| Monthly transaction limit | 6 |
Expert review
Review by
Michael Benninger
michael.benninger@findercrew.comMichael Benninger is a personal finance writer at Finder. He is a former credit analyst and longtime freelancer whose articles have been published by Intuit, Blinkist, Business Insider and the Los Angeles Times. Michael graduated from Rowan University with a bachelor’s degree in business administration. When he’s not writing, you can usually find him watching movies, enjoying the outdoors or boarding planes to distant destinations.
Expert review
Yotta savings is best for those who like playing the lottery and want a fun way to save. The concept of a prize-based savings account may sound new, but it’s a model that’s been used in other countries for decades.Ultimately, a Yotta savings account offers a similar thrill to playing the lottery, but rather than throwing away money on losing tickets, you’ll deposit those funds into an FDIC-insured savings account.
But if you don’t win big, your money’s likely to grow faster elsewhere. If you don’t want to try your luck, explore other high-yield accounts for a more predictable savings option.
How does Yotta work?
Prize-linked savings programs like Yotta have existed in the UK since the 1950s, but this account is among the first in the US. Here’s how it works:
1. Get your tickets
c
For every $25 you deposit in a Yotta account, you get a recurring lottery ticket each week. For example, if you deposit $1,000, you’ll get 40 tickets every week as long as those funds remain in your account. For each ticket, you can pick seven numbers — similar to a Powerball or Mega Millions game. If you don’t select any numbers, Yotta will choose them for you.
2. Enter daily drawings
Every night at 9 p.m. ET, a third-party insurance company uses a random number generator to draw a single number for the Yotta lottery. Weekly contests begin on Monday and end Sunday. If the seven numbers drawn during a week match the numbers on any of your tickets, you could win anywhere from $0.10 to $10 million.
3. Collect your winnings
Yotta automatically adds your winnings to your account balance. For every $25 you win, you get another ticket for the following week’s contest.Is Yotta safe?
Yotta is backed by Y-Combinator, a reputable startup accelerator. Yotta is not a bank, but it acts as an intermediary between its customers and Evolve Bank & Trust, a Memphis-based bank founded in 1925. Any funds you deposit through Yotta are held by Evolve, which is FDIC insured for up to $250,000.Deposits you make using the Yotta app are securely handled by Plaid, a financial services startup owned by Visa.
What are the benefits of a savings account with Yotta?
A few perks to opening a Yotta account:
- No monthly fees. Opening an account doesn’t cost anything, and there are no monthly fees.
- You could win. If you win, your account balance could grow more rapidly than if you used a standard savings account.
- No gambling. You won’t be throwing away money on losing tickets. The more money you save, the more chances you have to win.
- Referral bonus. Sign up using someone’s Yotta savings referral code and get 100 free tickets to start. Share your own referral code after you sign up to earn even more bonuses.
What are the odds of winning $10 million with Yotta?
The odds of hitting the jackpot are one in 3,277,899,625. The fine print states that if you do hit the jackpot, you’ll actually receive a lump-sum payout of $5.8 million. That’s the present cash value of $10 million based on a 40-year annuity. While that sounds suspicious, it’s a common practice for lottery organizers to use annuity values in their marketing materials.
What should I look out for?
While Yotta offers an interesting and fun approach to savings, it still has some drawbacks:
- New app. Yotta debuted a few months ago, so the company doesn’t have much of a track record.
- Low APY. Yotta savings accounts receive a 0.2% APY, which is far lower than what many high-yield savings accounts offer.
- Opportunity cost. If you keep your money with Yotta and never win, you’ll miss out on the interest you would have earned with a standard high-yield savings account.
- Mobile only. Yotta only works with iOS and Android devices, so you can’t deposit or withdraw funds through a web browser.
Yotta savings reviews and complaints
Yotta savings has a 4.5 out of 5-star rating on Trustpilot based on 16 customer reviews. Customers love the app saying it’s a fun way to save money. Many people claim they’ve won at least $10 since opening their account, although they haven’t come close to winning the big jackpot. The biggest customer complaint is that you could earn more interest in a high-yield savings account.
Compare Yotta with other savings accounts.
How do I open an account?
You’ll need an iPhone, iPad or Android device to open a Yotta savings account:
- Download the Yotta app from the App Store or the Google Play Store.
- Tap Sign Up, then enter your email address and create a password.
- If you have a referral code, enter it to collect free tickets, then tap Join Yotta.
- Fund your Yotta account.
- Make your first deposit and receive a ticket for every $25 you transfer.
Eligibility
To open a Yotta savings account, you’ll need to meet the following requirements:
- At least 18 years old
- Legal US resident
Required information
Provide the following details to open your account:
- Name
- Physical address
- Date of birth
- Social Security number
How do I deposit or withdraw my money?
The only way to deposit funds into your Yotta savings account is by tapping Get More Tickets in the app and entering the amount of money you wish to transfer. You can also set up recurring deposits on a weekly, biweekly or monthly basis.
To withdraw funds back into your linked account, navigate to the Settings screen in the app, and tap Withdraw. As with most savings accounts, you’re limited to making six monthly withdrawals. Withdrawals will take two to three days.
You have a daily limit of $10,000 and a monthly limit of $40,000 for deposits and withdrawals.