The 10 Best Crypto Savings Accounts of 2021 With High APY
Buy? Hodl? Sell? Diversify? Why do others have better profits? Can my cryptocurrency portfolio do better? What about this constant volatility? I guess this is just a part of the questions going through your head every time you check the latest digital asset market news.
I know what it’s like to constantly be questioning your investment strategy and wonder whether better opportunities are lying elsewhere. But I figured out that it isn’t about which assets you invest in as the market is heavily correlated to Bitcoin. It is more about what you do with your investments.
Buying and hodl-ing is great, but, like with traditional money, cryptocurrencies can and should be working for you while you are waiting for their value to grow. And the best way to do that is through crypto interest-earning accounts. If you are looking for the best place to earn interest on your crypto investments, then the top 10 list below will surely have the answer.
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How Do Crypto Savings Accounts Work?
Crypto savings accounts work on the same basis as traditional saving accounts, where you deposit currency in exchange for a particular interest that you earn overtime. They are designed to mimic conventional interest-bearing products as one of the most successful and time-proven offerings from the traditional financial system.
The main difference is that with cryptocurrencies, instead of fiat, you have to deposit digital assets. Another difference is that crypto savings accounts provide much better interest rates than traditional savings accounts.
The process of opening an account is also very similar. First, you have to provide some personal information (name, address, identity proof, and more). Then you have to pass a KYC compliance procedure where your identity is verified. Once you do that, you can proceed with depositing crypto and earning interest. With most service providers, you can manage your funds through their sites or mobile apps.
Best Crypto Savings Accounts: Top 10
Below you will find the top cryptocurrency savings accounts based on the yields on stablecoins and bitcoin. We update the list frequently. In case you notice a discrepancy, please let us know by using the contact form.
|Company||Max APY for Bitcoin||Max APY for Stablecoins|
The table features only the maximum APYs for Bitcoin- and stablecoin-backed offerings on different platforms. Specific terms apply, and the rates can vary based on the amount of deposited assets, the type of cryptocurrency, and the currency in which the interest will be paid.
BlockFi is among the leading cryptocurrency savings account service providers. It tops many of the charts you will find online due to the depth of its offering, the competitive interest rates, the flexible terms, and other key benefits. The BlockFi Interest Account (BIA) is an interest-bearing account, which provides competitive yields to crypto investors who decide to store their digital assets on the platform.
Opening an account is easy and can take less than an hour, the KYC procedure included. Once your profile is approved, you will be able to deposit cryptocurrencies and start earning interest. BlockFi supports various assets, including Bitcoin, Ether, Litecoin, GUSD, USDT, PAX, USDC, PAXG, LINK, and BUSD. There is no minimum deposit requirement.
The interest rates vary between 0.5% and 7.5% depending on the type and the amount of the deposited cryptocurrency. The interest rate will start accruing from the day after you deposit your first coins. After that, the compounding interest will be paid monthly on the first business day of each month. What is better is that BlockFi doesn’t have any withdrawal restrictions or lock-up periods. So you are free to withdraw your crypto assets at any time. Withdrawal requests are processed in 1-2 business days.
BlockFi is also renowned for its superb security measures, including keeping crypto assets in cold storage, two-factor authentication (2FA), unwanted transfer prevention through wallet address management, and more. In a nutshell, BlockFi’s terms and quality of service are among the best in the industry. In addition, its platform is easy to use, and you can track your cryptocurrency savings accounts on the go through the user-friendly mobile app.
While YouHodler doesn’t have the marketing buzz of competitors like Nexo or BlockFi, it indeed is one of the best crypto interest platform providers out there. Its crypto savings account service offers some of the most competitive terms in the industry for stablecoins.
YouHodler’s offering supports over 30 digital assets with interest rates ranging between 2.5% and 12.7%. The rates are flat, meaning it doesn’t matter if you deposit 0.01 or 10 BTC, as in both cases, you will take advantage of the offered interest rate.
The cryptocurrency savings accounts platform has a minimum deposit amount to start earning the interest, fixed at $100 in crypto equivalent. The maximum you can deposit is $100,000 in crypto equivalent. Unlike other service providers that pay interest monthly, YouHodler offers weekly compound interest payouts. This means you can access your gains much quicker, giving you the flexibility to reinvest, spend, or do whatever you like with the interest you have earned over the past week.
Among the key distinguishing factors of YouHodler’s offering is the high level of protection for its users’ funds. While covering all the standard in-house platform stability features like 2FA, wallet address whitelisting, and storing crypto assets in cold wallets, it goes a step beyond the rest and adds a $150M pooled crime insurance, provided by the leader in the field, Ledger Vault. This means, with YouHodler, your funds will be protected against theft.
Hodlnaut isn’t exactly the best-known name in the niche, but it steadily shortens the distance from its rivals. The Singaporean service provider offers some of the highest interest rates on crypto savings accounts for Bitcoin in the niche.
Starting on Hodlanut is a straightforward process. After completing the KYC verification (usually takes 1-2 business days), you can make your first deposit. However, it is worth noting that Hodlnaut might not appeal to the needs of crypto investors who want access to a wide variety of digital assets. For now, it supports just 5 cryptocurrencies, including Bitcoin, DAI, Ethereum, USDC, and USDT.
Users can start earning interest the moment they deposit any amount of crypto assets into their accounts. The interest payments are weekly, made every Monday in the same cryptocurrency the investor has deposited in Hodlnaut. When it comes to fees, Hodlnaut also fares well, although with room for improvement. The service provider charges a small withdrawal fee, while deposits are free. There are no withdrawal limits, you can withdraw at any time, and the requests are processed instantly.
The security features on Hodlnaut are in line with the common standard in the crypto market, including 2FA and cold storage for user’s assets. According to Hodlnaut’s site, the platform is used by over 5000 investors and holds $250m in assets. While these figures might seem small compared to the rest of the crypto savings accounts service providers, it is worth noting that Hodlnaut was launched in 2019.
Probably everyone with even the slightest interest in cryptocurrencies has heard the crypto lending platform Crypto.com. With over 10m users and 90+ supported countries, the crypto hub offers all types of digital asset products for its account holders. One of Crypto.com’s leading products is the crypto savings accounts. Users can choose from over 35 cryptocurrencies and, most importantly, benefit from one of the best interest rate programs in the niche.
However, the generous terms apply only if specific requirements are met, such as a minimum of 3-month deposit duration, a high CRO stake, and more. However, if you have somewhat limited starting capital, it would be better to look elsewhere. One of the critical advantages of using Crypto.com is the fact that the interest is paid daily. You are free to withdraw your earnings at any point. While deposits are free, Crypto.com charges withdrawal fees based on the cryptocurrency you use.
Regarding security, Crypto.com does a pretty good job. It supports similar security protocols to other service providers like 2FA and cold storage of assets. In addition, it has FDIC insurance for cash deposits (not crypto, remember) and a bug bounty program designed to continuously improve the platform’s security and stability. In a nutshell, Crypto.com is best for investors who want to keep hold of their assets for the long term and also have a high initial amount to deposit.
Nexo is probably the most hyped interest-earning account provider in the niche. And it is not without reason. Industry insiders consider it the company with the best crypto savings account product, and so do its 1.5m clients. There are several reasons for that. First, we should mention the competitive interest rates. With Nexo, you can earn up to 8% interest on Bitcoin and up to 12% on stablecoin holdings if you choose to collect your earnings in NEXO tokens.
If you prefer to earn interest in a cryptocurrency or a stablecoin, the rates are 2% lower. However, there are no other hidden requirements like deposit duration or high initial capital. With that said, even the 6% rate for BTC and 10% for stablecoin holdings are among the best in the industry. Furthermore, Nexo gives you the chance to earn between 10% and 12% interest in fiat currencies.
Regarding fees, Nexo charges for withdrawals after users surpass a limited number of free withdrawals per month (the exact number depends on a so-called “loyalty tier”). Aside from that, fiat and credit line withdrawals and deposits are free.
According to Nexo, opening cryptocurrency savings accounts takes no more than 3 minutes, and you can earn interest right away. The earnings are paid out daily, and you are free to deposit or withdraw at any point you want. The security features of Nexo are also from the highest caliber. What is worth a shout is explicitly the $375m digital asset insurance coverage on custodial assets. This makes Nexo the service provider with the highest insurance on our list.
Aside from being one of the leading crypto exchanges worldwide, Gemini also offers cryptocurrency savings accounts. Judging by the success of the trading business, you might also expect its interest-earning account service to be, if not among the top on this list, at least a pretty well-rounded one. However, the truth is that Gemini Earn falls behind its main competitors when it comes to APYs. You can earn anywhere between 1.26% and 7.40% on crypto holdings, which is way lower than comparable products from other service providers.
Gemini Earn might not be the best option out there because it is designed more as a complementing feature than a standalone product. Alternatively, it is intended to enhance the cryptocurrency trading activities on the platform rather than shine alone. The idea is to grant you the freedom to buy cryptocurrencies through the exchange and opt-in in the Earn program to start earning interest rates instantaneously.
You can redeem and move your digital assets plus the accrued interest rate back to your trading account at any time. The good thing is that Gemini Earn supports exotic cryptocurrencies that you will hardly find within the offerings of other companies. These include AMP, ANKR, SUSHI, and more. All-in-all, Gemini Earn is an excellent opportunity for existing and new clients of the platform who want to trade and earn interest from a single place. For the rest, however, there are better options.
CoinLoan might be the “hidden gem” many of you reading this list are looking for. Having been around 2017, the Estonia-based service provider often flies under the radar but has a very sound crypto interest accounts product with competitive terms and APYs.
With CoinLoan, you can earn anywhere between 7.2% for Bitcoin to 12.3% for stablecoin holdings. Similar to Nexo, these offers include a 2% CLT-staking bonus, meaning that the effective APY for BTC holdings is 5.2%, with 10.3% for stablecoins, respectively.
The platform supports 16 cryptocurrencies and stablecoins and two fiat currencies (EUR and GBP). The minimum deposit amount requirements range from about 25 EUR to $100. The duration terms also are very flexible. For example, the minimum period is one day, while the maximum period is unlimited. Deposits and withdrawals in fiat and virtual currencies are free. However, deposits by Visa or MasterCard are subject to a 2 EUR + 4.2% fee on the deposit amount.
CoinLoan’s security features are also worth a mention. The company stores client’s assets in BitGo, the most trusted custodian, with $100m insurance cover. It also performs regular vulnerability check-ups, infrastructure monitoring initiatives, and other in-house security audit procedures.
Binance is another example of a well-renowned crypto exchange that also has a savings account product. Binance Earn is one of the interest payment account services with the biggest numbers of supported assets. You can deposit everything from the most popular assets like BTC, ETH, and LTC, to AAVE, BAKE, and INJ – there are over 110 cryptocurrencies available.
The service works a bit differently than the traditional crypto savings offerings. The reason is that Binance provides its users with different “products” that have flexible or fixed duration terms and various staking options. These factors define the exact APY the user can earn. However, in the general case, a flexible BTC deposit will guarantee a 1.2% interest earnings. It is worth noting that Binance Earn also features some riskier products or dual-investment offerings that can bring you extremely high yields of up to 72%, coming in the form of interest and liquidity rewards.
In a nutshell, we can say that Binance Earn is similar to Gemini Earn in the sense that the product complements the trading features of the platform. Alternatively, it gives you the freedom to simply transfer a preferred amount of crypto into a product and immediately start earning interest.
The Voyager Interest Program allows you to trade actively and earn interest from the same place simultaneously. The interest rates are pretty competitive, although not the best in the industry. For example, you can earn anywhere between 1% and 9% on your crypto and stablecoin holdings. A Bitcoin interest-bearing account can earn you 6.25%, while for USDC, the interest is the highest, sitting at 9%.
It is worth noting that the interest can change from month to month, so don’t take those figures for granted. Instead, always check the actual rates in the Voyager mobile app. The interest rate is credited to your account within five business days following the end of each calendar month. Although withdrawals tend to be processed instantly, in some cases, they might take up to seven days.
However, there is a catch. Voyager requires you to maintain a specific minimum monthly balance, which might be pretty high for beginners (0.01 BTC, 0.5 ETH, 100 USDC, etc.). While Voyager is a good option, it indeed isn’t the best on the market. There are service providers with longer history, more credibility, and more flexible terms that can serve your needs better.
Ledn is a Toronto-based financial services company specialized in cryptocurrency operations. Its crypto savings account offering is brought to you in collaboration with Genesis Capital, the largest institutional lender in the crypto niche. The concept for the product is as simple as it gets – to give you the freedom to earn interest from BTC and USDC.
There are no other cryptocurrencies supported. The interest rates go up to 6.1% for BTC saving accounts, while for USDC, the APY is fixed at 11.0%. All interest earnings are paid monthly.
Withdrawals for BTC earnings are subject to the standard blockchain fee, while for the stablecoin, there is a 10 USDC withdrawal fee. The withdrawal minimum requirements are set at 0.0005 for BTC and 10 for USDC savings accounts.
Ledn’s interest-earning lines don’t have any minimum balance requirements or locked-in terms. So you can start earning interest right away and withdraw when you need to.
Regarding the platform’s security features, it states that users’ coins are stored within the partnering custodian, BitGo.
Ledn’s crypto savings account offering is a good option for beginners. However, for crypto enthusiasts seeking more extensive flexibility and a more well-versed offering, it would be better to look beyond the Toronto-based company.
Crypto Savings Account Summary
Sooner or later, every digital asset investor looks at crypto saving account products as a way to put his funds to work. In fact, due to the increased interest in the niche, over the years, it has evolved so much that, today, we have plenty of worthy options. And the best thing is that the products available on the market continue to improve all the time.
If you are at the point of choosing your crypto savings account provider, it is essential to look beyond numbers and percentages. While the APYs are important, so are various other factors. These include security, the platform’s credibility, flexibility, adequate and reliable customer support, and many others.
If long-term investors play their cards right and go with a well-established service provider who constantly looks after its clients, they can ensure attractive returns with minimum risk.
Yet, as with any other investment, don’t overlook the principle to invest as much as you can afford to lose.
If you have just heard about crypto savings accounts for the first time and would want to get the basics before opening an account, then let’s deep-dive into the most important questions and points you should address as a starting point.
Crypto Savings Accounts Vs. Regular Savings Accounts
There are tons of comparisons between crypto and traditional savings account. The truth is that while they are both very familiar, they also share some key differences.
However, if you are a true believer in the potential of cryptocurrencies and want higher yields, then going for the digital asset-based alternative is a natural choice.
On the other hand, if you’re looking for an actual FDIC-insured savings account that prioritizes security over returns, then the traditional option is the better choice.
In the end, for investors, it is better than both coexist, and we are free to choose whatever serves our needs best.
Here are a few contrasting points to keep in mind:
In a yield-starved decade where the interest rates on regular savings accounts barely float over the zero lines, with many even hitting negative numbers, investors had long been looking for a better-performing alternative.
Today, we have it in the face of crypto-backed savings accounts. The APYs they offer can go up to 12% or more. In comparison, the APY on a traditional savings account is rarely above 0.25% – 0.5%.
Usually, an FDIC-insured bank will cover the assets of the depositor in case the entity goes bust. However, you should know that cryptocurrencies aren’t subject to Federal Deposit Insurance when it comes to crypto service providers and digital asset savings account offerings.
Depending on the service provider, its location, and availability of services, the U.S. dollars stored in your account might be eligible for FDIC insurance.
However, accounts and value balances in digital currencies aren’t considered bank deposits, legal tender, government-backed, or subject to FDIC insurance. The case is the same for coverage by the Securities Investor Protection Corporation or any other governmental or government-backed protections.
To fund a crypto savings account, first of all, you will need to ensure the required amount of cryptocurrencies. You can do that either by buying them beforehand and then transferring them to your earning-account profile or buying them directly from a platform that offers both services.
With that said, you can fund your crypto savings account with a transfer of digital assets from your wallet or with a debit card when you are buying the crypto directly from the service provider’s site.
However, the procedure might be a bit tricky for beginners and wouldn’t happen instantaneously due to the required blockchain confirmation times.
With conventional savings accounts, you can fund them through a quick one-click deposit from your online banking platform, a wire transfer, or else.
With cryptocurrency savings accounts, you always have to make sure that you transfer the funds to the appropriate address. All transactions are irreversible, and if you make a mistake, then all funds are gone forever.
With conventional savings accounts, you typically have a reference account, and if you happen to transfer the funds to the wrong bank number, there is a good chance that you will get them back.
In terms of withdrawals, the only significant difference between crypto and regular savings accounts is the currency you can withdraw in. With crypto savings accounts, you can withdraw in both fiat and digital assets.
Also, the processing times can be much faster when it comes to crypto savings accounts. At worst, you should wait up to 2 business days. Most of the time, though, the withdrawals are processed instantaneously.
Last but not least, many crypto savings account service providers don’t charge any withdrawal fees. However, depending on your bank, regular savings accounts can incur significant fees.
Cryptocurrency savings accounts are designed to replicate the way traditional savings accounts accrue interest.
However, not all service providers’ offerings are created equal. Some offer compounding interest (daily/monthly), while others don’t. Make sure to opt with a product that provides compounding interest as the difference in the long-term can be massive.
Bitcoin Savings Account vs Stablecoin Interest Account
Suppose you are convinced you will opt for a cryptocurrency savings account instead of a traditional bank savings account. In that case, the next step is to determine whether to go for a bitcoin or a stablecoin option.
There are two factors at play – price fluctuations (a.k.a volatility) and returns. Alternatively, it depends on your risk profile. If you are keen on a cryptocurrency savings account that brings you better earnings from its jumps in price but is also prone to more significant losses, then the Bitcoin option is the way to go.
On the other hand, if you only want to collect interest and value price stability above anything else, go for a cryptocurrency savings account backed by a stablecoin. That way, you will know you won’t have to stress too much about price dynamics and ensure the peace of mind that you are collecting interest from a cryptocurrency savings account that will keep the value of your portfolio stable for the long term.
How To Make Money With A Crypto Savings Account?
It’s simple, deposit cryptocurrencies, and you will start earning interest right away (or, in the worst case, the next day).
If you want to maximize your earnings, it is better to keep your account going long-term. This is because most service providers reward long-term crypto savings accounts with better APYs.
Also, bear in mind that stablecoins usually get much higher interest rate earnings than cryptocurrencies like Bitcoin, Ethereum, or Litecoin. Due to their lower volatility (basically non-existent), service providers can offer APYs of up to 12% or even more.
Another clear and obvious fact is that the more crypto you deposit, the bigger interest earnings you will guarantee for yourself. However, always ensure that you deposit only amounts that you are comfortable losing. In the end, the crypto industry isn’t as regulated as conventional financial institutions, and your funds won’t be covered in case the service provider decides to close shops and go AWOL.