How to get 2% interest risk free ( when interest rates are close to zero) Transcipt

 I have been avoiding posting transcripts of my show for a while, mostly because it seems like extra work without much benefit, but here is my first trial of it. Please remember, this was generated by a machine, so I don't know what it will say exactly. If you find benefit in this, please comment below. If this is actually helpful to enough people, I might do it more in the future, and may even edit the transcripts as well. 

From San Diego California. It's the Frugal Life podcast with your host Ricky Hirschi. Welcome to The Frugal life as you might know interest rates are super low right. Now. One of my favorite high-yield savings accounts at American Express is only offering .6% interest right now, which is insanely low probably lower than inflation. But that is a whole nother story. What if I told you though there's another bank that's offering 2% interest on average that's totally fdic-insured. Well, that's what we're talking about today a service. I am actively using right now to get a better return on my investment and it's called yotta  savings. If you follow big YouTubers like Graham Stephan, you may already know that he is involved in the Odyssey savings. He's an investor in it. Now in addition to just need a user of the app. So yotta has a game like system. Basically where you pick these like lottery tickets almost that you have a chance of winning. Big prices depending on how many numbers you match the maximum prize right now is ten million dollars. And so in addition to the chance of winning money, you get a base interest rate of 2% So together with that base interest rate and the prizes the average interest rate at the bank works out to be about 2% per gram Stephen. Now, what is yotta Bank do with your money? Well yadda Bank yotta savings, I should say deposits the money into a bank called evolve bank, which is an fdic-insured bank. It's safe, like any other fdic-insured bank just don't put more than $250,000 in it at that includes all your accounts at evolve. Basically if there was ever a run-off the bank, you know, like in Mary Poppins, right when the the children cause a run on the bank and everybody tries to get their money and there's not enough money because the bank is lent it out. Well FDIC Insurance stops that from happening. Government will step in and everybody will get their money assuming they have less than $250,000 in the account, which is the limit of FDIC insurance. I think it's cool in a way though that you have a range of possible outcomes. That's the upper bound of the rewards is crazy high in a sense. I mean in some ways it's kind of the appeal of the lottery, right if you strike out big you'll make a ton of money and likewise here. You have a chance of striking out big although not the best chance. We'll talk about that in just a minute super high income bounce off our little hard to come by in a job. You might be paid a flat or hourly rate. And those are the bounds you'll never make more than your salary or salary rate their set. They are bounded perhaps you should work on commission which might be unbounded in a sense. There is an inherent limit to the amount of stuff. You can sell or with me with my books and podcasts in theory. They can make an unbounded amount of dog. And with yotta, I mean you have a ten million dollar upper Bound in a way you can get some of the experience of gambling but without actually gambling and being smart with your money. But like I was alluding before your odds of winning the top two prizes aren't very good. According to Andre Jing. I probably said that wrong your odds of winning the top prize. The ten million dollars wage is one out of approximately 8 billion. So not very great. But on average you will make probably around 2% which is crazy high great for now for a risk-free investment. Some people will make less than that by its very nature and average is an average and so what half the people will make less than that half the people will make more practically. It's a mean not a median which means it's not exactly necessarily true but more or less. So even if you do at least initially make a little bit less than you could have made with dog. Traditional Bank, for example my Traditional Bank is offering me .6% That means that there's a small chance. I'll make less money in this yotta savings account. But as time goes on down there may be a regression to the mean and basically if you extend the time Horizon long enough, you probably will achieve average results outliers smooth out a long time. So in short check out this app use my code Richard 45, if you do that I get some little bonus tickets that will help me keep the show running. All right, let's take a quick break and we will be right back

Okay, welcome back now for just 1 second. I wanted to talk about my results on the app in my first three weeks. I've gotten about a dollar and $0.52 on average in prizes each week. So dividing it by the capital. I contributed $10,000 and then timesing it by 52 the number of weeks in the year. We can see I get a rate of almost 8% That's just the rate for prizes. You can add 2% to that as well for the base interest rate. And so I personally have gotten about 1% interest from this versus .6% interest from my other bank, which is pretty good. I hope it goes higher closer to the 2% but that's just how what statistics work. Some people are going to be on the lower end. Some people are going to be on the higher end. I decided to check out some of the reviews on the Play Store for the most part people like it it had A 4.3 star rating in the review store. Both of the negative reviews are people that got unlucky and are complaining or comparing it to the return you get on dividend stocks, which doesn't make sense. This is a bank. It's not a dividend stock that has much less risk than a dividend stock. And therefore it has much less return than dividend stock. And then most of other people are just experiencing technical difficulty issues stuck in login Pages, et cetera. The usual people don't know how to use technology type crap. As always thanks for listening.

  I'd love your comments on Yotta savings. What do you think about the app? Have you won big yet? Let me know after that after you sign up and don't forget to use my code Richard 45 you get some bonus tickets and whatnot more chances to win. Oh and some lightning quick follow-ups, just so you know, it is a savings account not to checking's account page. Limited to six withdrawals a month from the account like any savings account anywhere. That's just the limits that by some regulatory body. I don't remember which oh and to the prices are determined by some third-party organization. At least that's my understanding. So there's no risk of Yotta itself manipulating who wins and whatnot. All right. Thanks again for listening. Have a great week and as always stay frugal.