A dollar saved is a chance to win $10,000 every week. PrizePool is another prize-based savings account similar to Yotta. The accounts have a lot in common:
- FDIC insured through Evolve Bank & Trust up to $250,000
- Users win interest via a lottery system with recurring tickets awarded for saving money
- Users get debit cards for easy access to funds
- Rewards for referrals and not spending much money on advertising
- Higher APY than most alternative savings accounts
PrizePool distinguishes itself in how it distributes tickets and prizes. For every $1 in your account, you earn 1 ticket per day. These tickets are automatically entered into weekly drawings for the chance to win one of 6,000 cash prizes, including a monthly $10,000 grand prize. Currently, the total monthly prizes are $50,000 and this week’s total prizes are $9,500.
PrizePool pays you a base APY of 0.30% (paid monthly) in addition to your winnings. While PrizePool has not announced an official average APY, based on user feedback, the average APY seems to be over 3%. However, the prize APY you win depends on how much you’ve invested. Too little money and you are unlikely to win. Too much money and the fixed number of prizes will not generate enough to earn a decent return.
Fortunately, the base APY is already greater than anything major banks offer for their savings accounts and many CDs. Moreover with a few hundred dollars invested, the stated APY estimate is 3%.
Where PrizePool really outdoes Yotta is in its referral program. For being referred and for referring others, you get a bonus 10%. For example, if you accept my referral code (295JB) and you win $1,000, then you and I would both win $100. You would end up with $1,100 just for being referred. This bonus is also permanent! Meaning that you will always get an extra 10% every time you win prizes, big or small.
Meanwhile, Yotta offers you a number of one time bonus tickets and a 1 year boost to your total number of recurring tickets. This is clearly not as good as PrizePools 10% more earnings for being referred and earning 10% from all of your referrals.
Now, Yotta does have the edge on PrizePool in a few areas:
- Yotta has more features, such as a credit card, crypto buckets, and peer-2-peer payments
- Yotta allows for instant deposits, so you get your tickets while the transfer is still pending
- Yotta has a prettier and more fun interface
- Yotta has larger prizes that you could potentially win every week
However, PrizePool offers more consistent, smaller prizes rather than the more top heavy prizes Yotta offers, more os now during their Hot Pot promotion. Plus, the referral program at PrizePool is far more significant than Yotta’s.
I expect PrizePool to follow Yotta’s feature trajectory by offering credit cards, credit building offerings, and more.
Currently, PrizePool is allowing users to signup for a crypto bucket that advertises 4% APY and 2x the tickets (so 2 tickets per dollar saved). However, remember that these funds saved in a crypto bucket are not FDIC insured.
Personally, I plan to use PrizePool to supplement Yotta for consistent smaller wins. What do you think of PrizePool?