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Yotta Reduces Net Earning Rates on >$10,000 Balances
When Yotta first launched (read my Yotta Savings Review), you could keep as much as you wanted in the account, with all deposits earning the same number of prize draw tickets. Yotta is a savings account where your winnings each week are determined by your luck in the daily prize ball draws. I love it, but I only want to do it when I can earn more than a traditional bank.
In December, Yotta made a negative change which changed the number of tickets you got as follows:
- Accounts with balances <$25,000: 1 recurring ticket for every $25 deposited
- Accounts with balances >$25,000: 1 recurring ticket for every $25 deposited up to $25,000 then 1 recurring ticket for every $150 deposited
Well, I guess they are struggling to stay (or become) profitable because they are reducing the amount you can keep on deposit with the full rate earned once again.
Beginning May 3rd, you will earn 1 ticket for every $150 on your balance above $10,000. You will still earn 1 ticket per $25 on the first $10,000 in your account.
What Should You Do If You Have More Than $10,000 at Yotta Now?
You’ll want to wait a few days to withdraw. If you withdraw funds before the Sunday night Yotta ball drawing, they’ll take away your best tickets and ruin your week’s earnings.
On Sunday night, after the draw, withdraw all but $10,000.
Why? Because at 1/6 the earn rate, which is what this is, instead of earning a bit over 1%, you are likely to earn less than 0.25% on the balance over $10,000.
You’d be much better off investing those funds at Marcus, where the base rate is 0.5% but you get an extra 0.10% with your AARP card and an additional 0.2% for three months when you signup via a referral.
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I reached out to their customer service and I think this only applies for new deposits after 5/3. This was their message
Hi, Happy to provide some more clarity. You will retain your current 802 tickets at their current value. Next week after May 3rd you will only earn another ticket for every additional $150 you deposit.
The nuance here is everything. They are saying this doesn’t apply until 5/3 which is true. However, it applies to both old and new monty after that date.
The statement they had provided is: “Thank you for being a Yotta user! We are announcing a change to Yotta’s ticket system. Beginning May 3rd, you will earn 1 ticket for every $150 on your balance above $10,000. You will still earn 1 ticket per $25 on the first $10,000 in your account.
For example, if you have $11,000 in deposits, the first $10,000 will earn 400 tickets and the remaining $1,000 will earn an additonal 6 tickets for a total of 406 tickets.”