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While there is no shortage of banks that offer their customers high-yield savings account options, not all such accounts are created equal. As a consumer, you want to carefully evaluate all of your options in order to ensure you’re choosing the one that will best serve you in your financial goals. But how do you determine which high-yield savings account is the one for you?
In this article, we’ll provide a detailed Yotta review, carefully highlighting all the features and functions of this innovative platform to help you understand exactly what makes it stand out from the rest, as well as whether or not it’s the right savings option for you.
What is Yotta?
Yotta is a relatively new banking company arising from the fintech world. Founded in 2019, Yotta strives to shake up the traditional methods of banking by offering users fun and innovative touches, in addition to the expected industry standards. All accounts come with up to 2.70% APY, prizes, and the security of Federal Deposit Insurance Corporation insurance on account balances up to $250,000.
Like many of their competitors in the banking industry, Yotta is a bank that allows customers to open high-yield savings accounts, deposit money into the account, and earn a higher rate of interest on the money they’ve deposited than they would on a traditional savings account. One of the fun twists Yotta’s high-yield savings account provides is that, each week, customers have the chance to participate in a lottery drawing for up to $10 million, giving them the chance to exponentially increase their personal wealth, while still saving the traditional way.
How the app works
Inspired by prize-based banking platforms like Premium Bonds out of the United Kingdom, Yotta works to provide all the standard functions of a savings account while also giving users a fun, potentially profitable lottery aspect, as well as I-Bond investing. Accessible exclusively through an iOS or Android app, you create an account, deposit money into your new Yotta savings account, and accrue interest while you also participate in lottery games to grow your savings.
For every $25 you deposit into your Yotta savings account, you earn one recurring ticket. Tickets have seven numbers that you can customize each week, or allow the app to choose on your behalf. Tickets are entered into daily drawings, and the more similar your numbers are to those drawn, the more money you earn. As your account balance grows, you receive more tickets in the lottery, increasing your odds of winning.
In our review of Yotta, we found a number of fantastic features on the platform. Here are the highlights:
- Ease of access: While you won’t find brick-and-mortar Yotta locations to do your banking, you have 24/7 access to your account through the mobile app. No matter where you are, the Yotta app and debit card make it easy to deposit and withdraw money.
- Fee free: With Yotta Savings, banking is completely free. That means you’ll never pay minimum balance fees, routine maintenance fees, international withdrawal fees, or any other charges that can be accrued with other banks.
- Prizes and growth: Yotta Savings prizes extend beyond the daily lotteries. Using their debit card gives you a 1 in 150 chance of getting your next purchase free of charge with their Lucky Swipes feature—just swipe your card to instantly see if it’s on Yotta’s tab. Even if you’re not winning big with these features, the ~2.70% APY will help you build wealth month after month.
- I-Bond Buckets: Diversify your savings by buying I-Bonds through Yotta. Backed by the U.S. government, these bonds are currently guaranteed at an interest rate of 6.89% up to $10,000. No need to jump through hoops and complete endless forms—just transfer money through the Yotta app, and they’ll take care of the rest!
Drawbacks to consider
Although there’s plenty to love about this savings platform, there are a few things that stick out to users as drawbacks in their review of Yotta. Here are a few to consider:
- Savings rate: The Yotta savings account’s ~2.70% APY is far above the national average of 0.30% but there are other high-yield savings accounts that provide a higher interest rate. Though you’ll need to consider the potential benefits of Yotta’s prizes and lotteries—which can drive APY beyond 2.7% in some cases—if surefire saving is your main objective, you may want to choose an account with a higher interest rate over Yotta.
- No in-person or online option: While the ease and accessibility of the mobile app make it a strong contender for many users, in others’ Yotta reviews, the fact that you can’t visit a Yotta bank in person or even online to access savings tools was a drawback. Even those who prefer digital savings platforms occasionally preferred doing so through a web browser, rather than an app.
Reasons to try Yotta
So, who is Yotta Savings right for? If you’re someone looking to build savings, but find the traditional methods a little too dull and therefore unsustainable for you, this could be just the thing to get you excited about building personal wealth. While you get all the core benefits of any other savings account, the excitement and possibilities included with the daily lottery and other prizes could be enough to keep you invested in the otherwise slow-moving act of savings.
Meanwhile, if you’re interested in exploring the world of cryptocurrency in a relatively stable, hands-off environment, the Yotta Crypto Bucket will allow you to do that. Delegate some of your savings into that bucket, and Yotta will invest 20% of that money into stablecoins, while the rest of your cash is protected by the FDIC.
Make saving fun with Yotta
Although a relatively young company, Yotta has already had great success in its efforts to make saving a more fun and interactive experience. With over 1,500 reviews on Trustpilot, users have given the app 4.7 out of 5 stars—so if you’re looking to try something new, Yotta is a safe place to do so. Having read this Yotta review, hopefully you now have plenty of information to help you make an informed decision about who you want to save with. Visit Yotta online to learn more or get started.