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Lottery Savings Accounts Let Savers Win Big Cash Prizes

By: Katie Cordrey - Published: • References: marketplace.publicradio.org and freakonomics.blogs.nytimes
Lottery savings accounts give you a chance to win cash prizes instead of earning regular interest on your savings. When you put your money into a lottery savings account, you're paid less interest than holders of standard savings accounts. The unpaid interest is accumulated and given as a lottery prize, usually once a month, to one of the lottery savings account holders. And that can be big money!

In the U.S., lottery savings accounts are only legal in Michigan: Most state-run lotteries prohibit anyone else from using lottery payouts -- even banks.