| ▲ | dehrmann 3 days ago | ||||||||||||||||
> bad interest rate That link shows 2.7% in Sept., 2023. It should have been more like 5%. The yellow flag should have been the sketchy "win prizes" part of their offering that the article didn't really mention. What's this pseudo bank's innovation? A raffle? I still agree that weren't actual signs of sloppy accounting customers should have seen, and as it really does look like customer funds were supposed to get deposited in an actual bank. | |||||||||||||||||
| ▲ | mehlmao 2 days ago | parent | next [-] | ||||||||||||||||
Not sure what Yotta is like now (or was in 2023), but it used to be a very good rate. I think I opened my account in early 2020. Went back and checked my notes for details: Every week, you would get a lottery ticket for every $25 in your account. In July 2020, expected value for a ticket was $.0227 ($.0157 if you exclude the jackpot, Tesla, and other top prizes that you were statistically unlikely to ever win). They also paid out a base APY of .20%, which was higher than savings accounts at a lot of big banks. Adding those together, the APY came between 3.51% and 5.02%, which was good compared to most banks at the time. Over time they made changes which decreased the expected value of each ticket, I closed my account in 2021 when the rate was no longer competitive. Looks like I quit at the right time. | |||||||||||||||||
| ▲ | gruez 2 days ago | parent | prev [-] | ||||||||||||||||
>What's this pseudo bank's innovation? A raffle? Who cares if it's just "a raffle"? Some behavioral economics research suggests it's a good way to get people to save, and it's not something offered by mainstream banks. | |||||||||||||||||
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