I was looking at prize-linked savings accounts (lottery-linked savings accounts), and I wonder: is there any fundamental benefit in putting my savings in such accounts instead of regular savings accounts?

I can only think of disadvantages: unpredictable and irregular interest payments, and excitement which fuels the gambling instinct.

1 Answer 1


The expected value is not any better than traditional savings account. Might actually be slightly less. But the people who would put money in a traditional savings account aren't the target market for this product. They are trying to attract people who might otherwise spend the money. I.e. Try to convince people to save who normally would not.

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    Specifically, they're trying to capture money that would otherwise be spent on weekly scratch-offs. "Put $5 in your savings account and be entered for a chance to win $1M every week! And you can take back the $5 if you need it!"
    – Brian
    Sep 23, 2020 at 13:48

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