Prize-Linked Savings, Explained
What it is, what it isn't, and a version that gives to charity every week.
Prize-linked savings is a simple swap. In an ordinary savings account, everyone gets a small slice of interest. In a prize-linked scheme, that interest is pooled and handed out as prizes to a few people chosen at random — and everyone keeps the money they put in. Nobody buys a ticket, so nobody loses one.
The best-known version is the UK's Premium Bonds. Some US credit unions offer prize-linked accounts too. People like the format for an obvious reason: a small, steady interest payment is easy to ignore, while a chance at a real prize gives you a reason to keep money set aside.
Where Charity Billionaire fits
Charity Billionaire takes the same idea and changes two things. First, a slice of the interest goes to charity every week, so the pool gives while it sits there. Second, there's no bank in the middle: your deposit lives in an open, non-custodial smart contract on the Base network that only you can withdraw your balance from.
- You deposit USDC on Base. Each whole dollar is one equal entry in every weekly draw while it stays deposited.
- The pool's deposits earn interest in Aave, a large on-chain lending protocol.
- Every Thursday at 9 PM Eastern, the week's interest is split: 90% to one depositor picked at random, 5% to a vetted charity, and 5% to the platform.
- Your deposit is never part of that split, and you can withdraw it in full at any time.
It is not a savings account
This matters, so it gets its own heading. Charity Billionaire is not a bank or a credit union, it doesn't offer accounts, and nothing here is insured. You also don't receive interest yourself — the interest your deposit would have earned is exactly what funds the prize and the charity gift. What you get in exchange is a weekly chance at the prize and the knowledge that your money is funding a gift to charity while it sits in the pool.
The draw can never take your deposit. The risks that remain are the ones every on-chain application carries: a bug in the smart contract (its source is published and verified) or a serious failure in Aave. Deposit only what you're comfortable holding in a smart contract.
Side by side
| Ordinary savings account | Prize-linked savings (bank or credit union) | Charity Billionaire | |
|---|---|---|---|
| Can you withdraw your money? | Yes | Yes, under the account's terms | Yes, in full, any time |
| Who gets the interest? | You | Pooled into prizes | 90% prize · 5% charity · 5% platform |
| Gives to charity? | No | Not usually | Yes — 5% of the pool's interest every week |
| Who holds the money? | The bank | The bank or credit union | An open, non-custodial smart contract |
| How is the winner picked? | — | By the institution | Chainlink VRF, verifiable on-chain |
| Insured? | Usually, within legal limits | Depends on the institution | No — smart-contract risk applies |
General comparison of how these formats usually work. Check any specific bank or credit union product's own terms.
How to take part
The simplest route needs no crypto at all: tap “Enter with card” on the home page. Your phone saves a passkey (Face ID or fingerprint) that becomes your wallet, you buy USDC with a debit card (purchases start at $5), and you deposit with one tap. If you already hold USDC on Base, you can connect your own wallet instead. The FAQ walks through both.
Nothing here is financial, legal, or tax advice, and nothing here is an offer of a security. This is a prize draw funded by the pool's interest. Your deposit is not spent and is withdrawable at any time. It is non-custodial and not insured. Prizes may be taxable — see Taxes.