Yotta is a fintech company based in New York City that offers a distinct savings interest rate structure. In October 2019, Adam Moelis and Ben Doyle launched Yotta, which has raised $16.6 million in a Series A round.
The Premium Bonds program in the UK served as the basis for Yotta's business plan. The UK government began offering interest-free bonds for sale in 1956. Rather, bondholders participated in a lottery-style scheme with the chance to earn monetary rewards.
Moreover, Yotta's initiative to create premium bonds has allowed almost 23 million individuals to save so far. To learn more about the program's success, you can listen to various Yotta podcast episodes that feature Premium Bonds. Read more to unravel the Yotta credit card review in this article.
Features Of Yotta
Earning Tickets
Up to $10,000, each $25 deposit wins one weekly recurring ticket. Additionally, you get a ticket for every $150 above $10,000. For example, a person with a $10,000 balance would get 400 tickets per week. If you set up direct deposit, you may receive up to two days' early payment and five percent bonus tickets on your paychecks.
There is a drawing every night at 9 PM ET to choose the winner. The more numbers on your tickets that match at the end of the week, the more you win. Many Yotta credit card reviews show that it doesn't cause clients to lose any money. Moreover, an independent insurance provider chooses the numbers, and due to this, Yotta receives fewer Yotta reviews complaints of scams and favors.
Savings Awards
Numerous media sources and Yotta credit card reviews have attempted to determine Yotta's potential earnings for the "average" person. According to some, it has a 1.5%2% "effective savings rate."
That being said, it does not guarantee that you will receive 1.5% to 2% interest on your deposits, and the base savings reward on Yotta is 0.20%. Inputs for effective rate computations include base rewards as well as lottery prize winnings. Weekly prizes on Yotta can range from $0.10 to $10 million, and this also applies to partial ticket matches, which award small sums of money.
Selecting Ticket Numbers
Each lottery ticket must be filled out, and it may take some time to fill out a large number of tickets. As the Yotta reviews complaints have previously said, a $10,000 deposit would result in 400 tickets every week. Who has the time to complete 400 tickets' worth of numbers? Well, thankfully, Yotta provides an easy option to fill out a lot of tickets swiftly. If you choose to use auto-fill, all of your tickets will be filled in with random numbers.
Partial Matches
It isnt essential to match every number on a lottery ticket to win a reward. Partial matches will still earn money and go toward increasing your effective savings rate (i.e., anything above 0.20%).
According to our review on Yotta, you might improve your chances of winning by pooling tickets from several sources. This is identical to a lottery pool where people jointly pool their tickets in the possibility of someone winning a ticket. Moreover, they then distribute the winnings to everyone in the pool.
Debit Card
Yotta has a Mastercard debit card. With this, youll also have up to a 1 in 100 chance to win the item you just bought for free. So, if you can spend $2,000 in the first four months after creating an account, youll also win 1,000 extra tickets. Upon making ten recommendations, cardholders will also get an automatic upgrade to a premium metal card. Moreover, customers may now utilize the mobile app using the Yotta Debit Card.
Who Is Suitable For Yotta?
According to our review on Yotta, risk-takers wishing to save money enjoyably should try it. Yotta savings accounts are like lottery tickets, except instead of buying and losing, you deposit your profits into an FDIC-insured account.
Yotta's APY is 2.7% with victories, and without incentives, your account earns 0.2% APY, which is comparable with Chase and Bank of America. But not competitive enough with high-yield savings accounts that consistently earn 4% or more.
Drawbacks Of Yotta
A year's dice rolls determine your effective yearly percentage yield. Yotta recommends a 2.7% APY if you're very unlucky. Those that don't play the lottery receive 0.2% APY. Moreover, top high-yield savings accounts like Barclays Online Savings provide 3.00% APY or higher.
Although not a problem particular to the account, Yotta is mobile only, so unlike other digital banks, you cant access your account using a web browser. You must use your mobile app to deposit or withdraw money from your Yotta account and connect it to an external bank account.
Lastly, Yotta enjoys revealing the identity and location of significant Yotta winners. So, if you make it big and don't want to be known, you will have to opt to conceal your name and identity inside the app before winning.
Is Yotta Safe?
Indeed, according to our review on Yotta, Yotta is FDIC insured up to $250,000 because of its association with Memphis-based Evolve Bank & Trust, established in 1925. You may transmit data to Yotta using 256-bit AES encryption.
Moreover, Visa-owned Plaid handles Yotta app deposits. Yotta's online community is also active, and the app's authors communicate with users on social media. And additionally, the startup accelerator Y-Combinator backs Yotta. Furthermore, Yotta has helped people win big. The largest winner, an Atlanta domestic cleaner, won $500,000. In 2021, a Yotta user won a Tesla Model 3 by matching six weekly lottery numbers.
