Customers of traditional banks expect to be paid interest on their savings and a handful of digital currency platforms are following suit by paying their customers interest on the coins and tokens they store in their wallets. In the U.S., high annual percentage yield (APY) savings accounts typically earn interest at a rate of approximately 2.15%, while standard checking and savings accounts earn far less at approximately 0.01% APY. Digital currency platforms, however, typically pay more interest.
If investors can withstand the wild swings typical of cryptocurrencies, there’s more to be earned in interest on their savings than at a typical bank.
Below are five cryptocurrency platforms that allow you to earn interest on your coins and tokens.
Celsius Network: Storing Bitcoin (BTC) or other cryptocurrencies in a Celsius account can earn anywhere between 3% and 18.55% interest depending on the currency.
Celsius pays users interest back in the coin being saved, which then compounds over time. Celsius pays 6.20% APY for Bitcoin, 6.61% APY for Ethereum (ETH) and 13.86% APY for Tether (USDT). It also allows customers the choice to be paid in Cel tokens (Celsius’ own coin) at an even greater rate. If a customer chooses to receive interest on their cryptocurrency savings in Cel tokens, they then receive 30% more rewards on other holdings.
Nexo: Nexo pays its customers high interest rates on crypto, stable coins and standard currencies such as USD, EUR and GBP. Storing crypto or stable coins on Nexo will earn interest back in those coins at a rate of between 8% and 12%. Nexo pays interest of 12% on standard currencies such as the U.S. dollar and the euro, far more than any typical bank pays.
Like Celsius, Nexo also has its own coin called Nexo and if customers choose to earn interest back in Nexo coins, they earn 2% more than the standard rate.
Binance: Binance offers its customers a few different ways to earn interest depending on the term chosen for investment. Binance offers fixed and flexible terms, as well as high stakes DeFi staking that has the greatest return rate at between 7% and 12.49% depending on the coin. For the safest flexible term option, Binance customers earn anywhere between 1.20% APY on bitcoin and 6.50% for 1inch (1INCH).
Crypto: The Crypto wallet also pays its customers a good return for storing their crypto and stable coins in its wallet. Crypto pays 6.5% on crypto savings and 12% on stablecoins deposited weekly. Interest is paid out in the coins held by the customer.
BlockFi: BlockFi customers earn a straight 8.6% APY on the coins they hold on the platform such as Bitcoin, Gemini Dollar (GUSD) and USD coin (USDC) in their BlockFi interest accounts.