Finding a solid bank can be challenging. Location, interest rates, ease-of-use, and more are all important factors when choosing a bank. However, the most important factor when choosing a bank is certainly the security and safety of your funds.
So, what is Prizepool, and is it a safe place for your money?
Prizepool is a prize-linked savings account. The company was founded in 2019 and is on a mission to make saving money more fun and exciting.
Check out our full Prizepool review for more!
The company's founders discovered that the average American does not have enough money to cover a $1,000 emergency, but at the same time, the average American spends roughly $1,000 a year on lottery tickets.
With this in mind, they created Prizepool, which is a savings account that incentivizes saving money. Every dollar you have in your account earns you one ticket per day. At the end of each week on Friday, the company raffles off over 4,000 prizes. And at the end of the month, they raffle off a $10,000 cash prize.
Even if you do not win a prize, your money is still safe. Additionally, regardless of prizes, members earn 0.30% APY, which is significantly higher than the interest rates at other banks.
In addition to weekly cash prizes, this savings account also features no account minimums or monthly fees.
Prizepool currently has a 4.5 star rating in the app store from over 1,100 reviews! This rating alone speaks to the trust members have for the app.
Prizepool is a safe way to store your money. All deposits are held and protected by their partner bank, Evolve Bank & Trust, Member FDIC, with bank-level security and encryption, and insured up to $250,000.
So what does it mean to be FDIC insured? The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.
FDIC insurance is not something that you apply for, it is automatically granted to anyone with funds at a FDIC-insured bank. Prizepool is a platform that incentivizes savings, but your funds are actually held at Evolve Bank & Trust, which is a FDIC insured bank.
When you enroll with Prizepool, you will need to provide your social security number. This is also true for any bank you hold your money with. The purpose of providing your SSN is so that the bank can report your interest and other earnings to the IRS.
Prizepool offers individuals a unique way to save their money. In addition to a highly competitive interest rate, the company also automatically enrolls each member in their weekly raffle where they give away over 4,000 cash prizes.
The company itself is not a bank, though funds are held by Evolve Bank & Trust, which is a FDIC insured bank. By holding funds at an FDIC-insured bank, members can rest assured knowing their money is safe.