Many banks offer savings accounts that can help you earn interest over time on money you deposit into your account. Yotta Savings functions similarly, but with a fun twist: you get to play a lottery game each week for opportunities to add more cash to your account.
In addition, your funds are insured by the Federal Deposit Insurance Corp. (up to $250,000) through Yotta’s partnership with Evolve Bank & Trust and you earn .20% APY (as of Jan. 15, 2021). This beats the national .05% APY (as of Jan. 15, 2021) found on most traditional bank accounts.
Yotta Savings is new startup in the fintech world, having been founded in 2019 and then boosted with funding in the summer of 2020 by Y Combinator, a popular seed-funding company. Y Combinator is known for helping launch huge companies like Airbnb, Dropbox, and DoorDash. This has helped support Yotta Savings as it seeks to challenge and disrupt the financial services industry with fun, new, and innovative ideas.
In this Yotta Savings review, we’ll cover the ins and outs of this account, including any fees it has, what we like about it, and how it can improve. This will help you decide whether it’s worth it for you to open a Yotta Savings account.
Yotta Savings basics
|APY (as of Jan. 15, 2021)||.20%|
|Minimum balance for APY||None|
|Minimum deposit to open account||None|
|Monthly maintenance fees||None|
|ATM access||Not currently (as of Jan. 15, 2021), though Yotta plans to release a debit card with ATM access in the future|
|Transactions per month||You can make up to six withdrawals from your account per month according to Federal Regulation D; you’re limited to $10,000 in daily transactions and $40,000 in monthly transactions|
How Yotta Savings works
The founders of Yotta were inspired to create a prize-linked savings account after seeing how well a similar company, Premium Bonds, did in the United Kingdom. Yotta Savings works similarly to how online savings accounts work, except Yotta Savings is accessible only from a mobile app (available for both iOS and Android devices) and not a web browser. Once you’ve signed up for an account and linked a bank account, you can deposit money into Yotta Savings. You can also withdraw money from Yotta Savings into your bank account.
Participating in the Yotta Savings lottery game requires making at least one $25 deposit. For each $25 deposit into Yotta Savings on up to a $25,000 account balance, you’ll earn one recurring ticket. For each $150 deposit into Yotta Savings on balances over $25,000, you’ll earn one recurring ticket. So if you deposit $50 into your account when you first open it, you’ll get two recurring tickets.
These tickets are used in weekly drawings in the app. You choose seven numbers for each of your tickets every week (six regular numbers and one Yotta Ball). If you don’t choose any numbers, the app will automatically choose random numbers for you. One number will be drawn each night of the week, starting on Monday. The final number is drawn on Sunday and the week’s winnings are determined. As you match more numbers on your tickets, you win more money. Matching all seven numbers on one ticket wins the $10 million jackpot.
Because your tickets are recurring based on your account balance, you’ll receive the same number of tickets each week if your balance doesn’t change. For example, a $10,000 account balance would receive 400 (10,000 / 25 = 400) recurring tickets each week. If your balance drops to $5,000, you’d receive 200 (5,000 / 25 = 200) recurring tickets. So the higher your account balance each week, the more tickets you’ll receive, and the higher your chances of winning cash from the Yotta lottery.
What we like about Yotta Savings
- No fees: Avoiding fees can be an important strategy when choosing the best savings account. With Yotta Savings, you don’t have to pay minimum balance fees (or keep a minimum balance), monthly fees for maintenance, or other fees. As advertised, Yotta Savings is 100% free. This is in sharp contrast to many bank accounts that have loads of fees, so it comes as a welcome relief.
- Accelerated growth: Having a .20% APY (as of Jan. 15, 2021) may seem low compared to certain rates over the years, but it’s actually much better than the national average of .05% APY (as of Jan. 15, 2021). In fact, Yotta Savings earns about four times higher than your traditional bank account. So although it's not the highest among high-yield savings accounts, it's certainly above average and could be good for a variety of savings goals or an emergency fund.
- Prizes: Likely one of the biggest draws of Yotta Savings is its lottery-centered prize system. Buying lottery tickets is often associated with the thrill of being able to win huge prizes, but it’s also typically accompanied by disappointment when you lose and regret wasting money. You won’t necessarily win big money every week with Yotta (the odds of winning the Yotta jackpot are one in 8 billion per ticket), but it’s fun and your small winnings can build up over time, adding to the .20% APY (as of Jan. 15, 2021) you’re already earning.
- Mobile access: Life is busy, but it’s important to have access to your finances no matter where you are. Because Yotta Savings has a mobile app for iOS and Android devices, it’s easy to make deposits and withdrawals while you’re on the go.
What Yotta Savings could improve
- Mobile only: Currently (as of Jan. 15, 2021), Yotta Savings is only available to use through the mobile app. This means you can’t access your account through a web browser, which limits how accessible its features can be. Many people will find the mobile app to be convenient enough, but not having the option to use a web browser on your computer may not feel helpful to all people.
- Average savings: Yotta Savings’ .20% APY (as of Jan. 15, 2021) is much better than the national savings rate of .05% APY (as of Jan. 15, 2021), but it’s still lower than some of the other available options. The best savings accounts typically have higher interest rates than what Yotta Savings provides, though you’d have to compare each account entirely to see which one offers the best value.
Compare earnings with Yotta Savings vs. a traditional savings account
One of the best ways to see how well a savings account can perform is by comparing it against another savings account. Here, we start each bank account with a starting balance of $5,000 and then see how that balance grows over one year, three years, and 10 years.
The traditional bank account’s growth is calculated using the .05% APY (as of Jan. 15, 2021) national rate for savings accounts. The growth rate for the Yotta account is calculated using its .20% APY (as of Jan. 15, 2021).
|Traditional savings account .05% APY
(as of Jan. 15, 2021)
|Yotta Savings .20% APY
(as of Jan. 15, 2021)
|After one year||$5,002.50||$5,010|
|After three years||$5,007.50||$5,030.06|
|After 10 years||$5,025.06||$5,100.90|
Not surprisingly, Yotta Savings is the superior option for growing your savings when compared with a traditional savings account. Keep in mind, you’d likely earn more than what this table shows if you were to make regular deposits into either account. Also, winning cash prizes with Yotta Savings could help boost your funds even more.
How to open a Yotta Savings account
Yotta Savings account is likely easier than opening a savings account from a traditional bank because it might only take a few minutes. Simply head to the Yotta Savings website or download the mobile app and sign up for an account with an email address and password. Make sure to use a referral code when signing up to score some free tickets to use in the Yotta Savings lottery drawings.
Once you’ve signed up, head to the Yotta Savings app and connect a bank account in the settings. Going through this secure process will prompt you to input certain information, including your first and last name, birthday, address, phone number, and Social Security number. You’ll also be asked to deposit money into your Yotta Savings account, but you can skip this step if you want.
Deposits into your Yotta Savings account take about three business days and can be withdrawn after another four business days.
How to withdraw money from Yotta Savings
In the Yotta Savings app, choose the “Withdraw” option in your settings and select which connected bank account you want to move money to. Then input the amount of money you want to withdraw and submit the withdrawal. Withdrawals from your Yotta Savings account take one to three business days to process.
Other Yotta Savings fees
|Stop payment fee||$0|
|Outgoing wire||Not available|
Yotta Savings customer service
Yotta Savings is an online account, so you don’t have the option to visit any in-person branches. However, you can contact the Yotta Savings support team through messaging features in the mobile app or on the website. You can also message the Yotta Savings Facebook page or send an email to firstname.lastname@example.org.
FAQs about Yotta Savings
Is Yotta Savings safe?
Yes, funds in your Yotta Savings account are insured by the Federal Deposit Insurance Corp. for up to $250,000. In addition, sensitive information like your Social Security number is encrypted with 256-bit AES encryption and never stored on Yotta servers.
Who owns Yotta?
Yotta is owned by co-founders Adam Moelis and Ben Doyle and was founded in October 2019. Funds in Yotta Savings accounts are held with Evolve Bank & Trust and FDIC-insured for up to $250,000.
How does Yotta make money?
Yotta works with partner banks that pay a small amount of interest to depositors. This is one of the ways traditional banks typically make money as well. You deposit money into a savings account and earn a small percentage of interest on your funds. Your deposits then allow a bank to offer loans to other clients, though it’ll charge a higher interest rate on these loans than what you’re earning from your savings, which makes your bank a net profit.
Yotta primarily focuses on earning interest from deposits instead of offering loans at higher interest rates. And Yotta specifically partners with online banks that don’t have big real estate and marketing expenses so it can earn more interest and offer more value to its customers.
When you open an account at one of the best banks, it means that you'll be opening a savings account that can earn you interest. And while Yotta isn’t offering groundbreaking interest rates to its customers, you’ll still get a decent .20% APY (as of Jan. 15, 2021) and it proves that personal finance and growing your savings can be approached in a fun way.
Overall, if you decide to deposit a reasonable amount of money into your Yotta Savings account, you could expect a higher return on your investment. This is because you’ll receive more tickets as your deposits increase, which improves your odds of winning money during the weekly number draws.
And if a prize-linked savings account from Yotta doesn't sound like the right fit, then your next step would be to look through our list of the best savings accounts to find the right account for you.
Disclaimer: All rates and fees are accurate as of Jan. 15, 2021.