August 2024 Update: I just received an email that PrizePool was acquired and is shutting down. You can no longer join.
Welcome to my PrizePool review. PrizePool was a savings account that gave customers the chance to win up to $25,000 monthly. I partnered with PrizePool and all opinions are my own.
Are you trying to save more money or looking for a way to make saving feel more rewarding?
PrizePool offered a solution that combined a traditional savings account with prize-based incentives designed to make saving more engaging.
With PrizePool, customers earned entries into weekly drawings based on the amount and duration of their savings balance, and every four weeks one grand prize of up to $25,000 was awarded as part of a guaranteed prize pool.
There were no account fees for PrizePool users, and the program was designed to encourage consistent saving rather than risky spending.
The company’s stated mission was to motivate Americans to save more. PrizePool noted that many households regularly buy lottery tickets despite the low odds of winning; PrizePool aimed to redirect that habit toward saving by providing prize-based incentives while preserving the safety of a bank-backed savings account.
In short, PrizePool turned saving into a potentially rewarding habit without the risk of losing principal.
PrizePool received attention from national outlets such as the Wall Street Journal and Cheddar as an innovative savings product that combined prize-linked incentives with FDIC-protected deposits.
Below I provide a clear overview of how PrizePool worked, what types of prizes it offered, how to sign up, and safety considerations so you can understand whether a similar product might suit your goals.
Quick summary: PrizePool combined a bank savings account with a prize-linked rewards structure. Each month featured over 15,000 cash prizes totaling $50,000, including a single $25,000 grand prize awarded in each four-week period. PrizePool balances were held with a partner bank and FDIC insured.
Full PrizePool review
What was PrizePool?
PrizePool was a savings account that rewarded customers for saving. Instead of relying only on traditional interest, PrizePool issued daily tickets based on account balances; those tickets entered weekly drawings for cash prizes.
The company’s stated goal was to increase saving behavior by making the experience more engaging and fun through prize incentives, while still protecting deposits through a partner bank.
PrizePool also offered a small savings bonus — reported as a 0.30% annualized return — in addition to the chance to win prizes.
How PrizePool worked
For each dollar held in a PrizePool account, the account holder received one ticket per day. Tickets accumulated over time and were entered into weekly drawings.
For example, a $100 balance held for 10 days generated 1,000 tickets (100 dollars × 10 days). Those tickets were eligible for weekly prize drawings for that period.
Prizes and drawing mechanics
PrizePool featured thousands of prizes each month. The program advertised more than 15,000 prizes totaling $50,000 every four weeks, with a tiered prize structure and a single large grand prize in each cycle.
Prize amounts ranged from small cash awards to larger sums, with examples that included:
- $25,000 grand prize (awarded each four-week cycle)
- $1,000 prizes
- $500 prizes
- $100 prizes
- $20, $10, $5, $2, and $1 prizes
Weekly drawings were conducted by randomly selecting winning tickets from the pool. Winners could only receive one prize per week; when a ticket won, the remaining tickets associated with that account were removed from that week’s drawing to give others a chance to win.
Costs and fees
PrizePool marketed itself as free to use: no monthly service fees, no hidden maintenance fees, and no charges for incoming or outgoing transfers as part of the advertised product offering.
Minimum balance
There was no required minimum balance to open or maintain a PrizePool account according to the company’s terms, making it accessible to savers at various income levels.
Safety and FDIC insurance
PrizePool partnered with a federally chartered bank to hold customer deposits. Account balances were FDIC insured up to applicable limits (typically $250,000 per depositor, per insured bank, for each account ownership category).
PrizePool also used bank-level security and encryption to protect user information and account access.
How to enroll
When PrizePool was accepting new customers, enrollment was straightforward and typically completed through the mobile app on Google Play or the App Store. The onboarding process included providing personal details, linking an external bank account for transfers, and funding the PrizePool account.
The company offered promotional referral incentives at times; referral codes increased prize earnings for referrers and referees. Account setup usually took a few minutes to complete.
How PrizePool generated revenue
Prize-linked savings programs like PrizePool generally used yields earned on pooled customer deposits, held at partner banks, to fund the prize pool and operational costs. The net interest margin and partnerships with banks allowed the service to distribute prizes while covering business expenses.
Is a prize-linked savings account worth it?
Prize-linked accounts can be a useful tool for people who want extra motivation to build savings. They combine the safety of bank deposits with the excitement of a lottery-style reward system, making saving feel more immediately rewarding.
Compared to a traditional savings account, the combination of a modest savings bonus plus the chance to win cash prizes may yield higher outcomes for some savers, especially if the incentives encourage more consistent saving behavior.
Because the product carried no fees and included FDIC insurance through a partner bank, it presented a low-risk option for those who enjoy the prospect of prize-based rewards without gambling away principal.
Questions? If you have any questions about prize-linked savings accounts or want clarification on how similar products work, I can help explain further.