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I Just Bought a Bank – Yotta YC S20
- Jugurtha 6y agoAt https://youtu.be/Fe1uWBSnzLw?t=151 https://youtu.be/Fe1uWBSnzLw?t=151: >You would earn an average of a 2 to about 2.25% return. Now for reference that's about 3 times higher than even the best high interest savings accounts out there. Is the implication of this that the "best" high interest savings accounts are about 0.75%?
- smabie 6y agoThe real question is, why would you ever keep any money at all in a savings account? 100% of my net worth is tied up in various investments, with $0 dollars in both my savings and checking account. Though if I ever do need cash, I just overdraw my checking and money/margin is drawn from my brokerage. I then liquidate assets as needed to pay off my credit card before the interest kicks in.
- adammoelis 6y agoYotta founder here. The issue with investments is that you risk losing money. People still need an emergency fund and that money should be in an FDIC insured account for a rainy day.
- deleted 6y ago[deleted]
- eemil 6y agoPerhaps you can clear this up? I still don't understand how Yotta bank intends to earn money. Not just to stay afloat, but also pay for the unprecedented interest rates of its savings accounts. Seems like another growth now, profit later/never venture to me. I wouldn't place my trust, let alone money (even if it's insured) in such an establishment.
- chansiky 6y agoI would love a solid answer as well, but you have to realize most "money" out there is credit and its effectively how our economy works, so you don't necessarily need to make real money to make real money.
- adammoelis 6y agoInterchange, affiliates, and lending will be a strategy for us soon.
- thoughtstheseus 6y agoHistorically it was more difficult to liquidate assets. If you do need to liquidate assets it can be poor timing (market crashes + herding) and create excess taxes. Cash is an investment. Yet the government is flooding the markets liquidity now so...
- kcatskcolbdi 6y agoHow is this not gambling? This just seems like they combined gambling with a pyramid scheme.
- adammoelis 6y agoThere's no risk of loss here. That's the major difference. Gambling is gambling because of the risk of loss.
- hexbinencoded 6y agoIt's not unusual. An acquaintance from a hackerspace bought a bank charter from a closing regional bank to reduce the costs to complete an international transaction.