This High-Yield Savings Account Offers You a Chance to Win $1 Million

These days, it's not hard to find a savings account paying an annual percent yield (APY) above 4.5%. In fact, with the federal funds rate sitting between 5.25% and 5.50%, many banks are offering rates above 5%, while some credit unions have done the unthinkable and are paying interest between 6% and 7%.

So when you hear about a relatively new banking app that pays 4.5% on your savings, you may think it's no big cheese. But toss in the chance to win $1 million -- plus other money prizes valued at $10,000 per week -- and you might stop and ask what witchery this is. Well, the Prizepool Savings App is no witchcraft, just a digital bank account with some unusual features. If you'd like to earn a little extra on your cash, let's take a look at how this prize-linked savings account works.

PrizePool -- the app that rewards you for saving money

PrizePool is a digital bank account that you access through the PrizePool app. Each account is backed by Evolve Bank & Trust, which is the partner bank of numerous fintech companies, like Dave and Affirm. All deposits in PrizePool are FDIC insured up to $500,000 -- double the usual limits at most banks.

Its headliner perk is its weekly drawing, which puts you in the running for cash prizes, including those valued at $1, $2, $10, $20, $100, and $500 (it used to give out $10,000 but has since distributed smaller prizes instead). Every $1 you save earns you one ticket daily. For instance, if you leave $20,000 in your savings account for one week, you would earn 140,000 tickets total. At the end of each week, PrizePool takes tickets from all accounts and mixes them together, drawing one at random for each prize.

Better yet, if you use the PrizePool debit card, you can earn 100 tickets per $1 spent, plus enter for a chance to get 5% or 100% of the purchase price in cash back.

I've been a regular PrizePool depositor for a long time, and I must say -- It's really fun. Every Friday at 12 p.m. PT, PrizePool notifies me that the drawings are in. You have to shake the app to see results -- which adds some suspense -- and I always get at least $1. The most I've won is $20, but the frequency with which I've won has helped me earn more than $500 in prize winnings.

But wait -- you said I could win $1 million?

PrizePool has two accounts: a regular savings account, which has no monthly account fee and earns a standard 0.30% APY, and a high-yield savings account (called "Stacked"), which has a 4.50% APY and costs $10 monthly.

The Stacked account earns two tickets per $1 saved and 200 tickets per dollar spent on the PrizePool debit card. The weekly prizes are the same for Stacked members as for regular accounts ($1, $2, $10, $20, $100, and $500), but here's the real payoff: Every day, you get a chance to win $1 million by spinning the PrizeWheel, a kind of digital "Wheel of Fortune," which dishes out prizes and tickets alike. Every spin requires 1,500 tickets but because each spin is a winner, it's well worth it for high account balances.

Is PrizePool worth your savings?

PrizePool can be a fun way to save money. But I wouldn't recommend it to everyone. I'd say, if you want a stable APY -- with an interest rate that's predictable for the near term -- I would look at top-paying CDs or high-yield savings accounts. The problem with PrizePool is that it requires you to pay $10 monthly for its highest 4.5% APY, which is a decent interest rate but not as high as no-fee savings accounts at other banks.

However, if you like a little risk, PrizePool does give you a chance to earn an APY that's unthinkable at most banks. Imagine, for instance, that you win $100 on a $1,000 deposit in a regular account. Even if you earned nothing for the next 12 months, your return on investment (ROI) for that period would be something like 10%. The odds of you winning $100 on a $1,000 deposit are slim -- PrizePool only gives out 10 $100 prizes per week -- but if that's the risk you're willing to take, you could land a good APY.

As far as the Stacked membership goes, it might be worth it if you have a large amount of savings, like $32,000, which would earn your $120 annual membership in one month. But I would compare it with other high-yield savings accounts first to see if it's the best value for your money.