Crypto

Best Bitcoin and Crypto Interest Accounts in 2021

Did you know you could earn interest on Bitcoin, Ether, and stablecoins? This article compares the best sites to earn monthly passive interest on crypto and explores the benefits and risks

Disclosure: All content is provided for educational purposes and should not be considered as investment advice. This article may contain links to services from our partners who compensate us.

With traditional brick-and-mortar banks offering dismally low rates on savings accounts (and some even charging negative interest), it might just be the right time to explore different routes for activating your idle cash.

Though still controversial, more and more people are eyeing the benefits of a cryptocurrency interest account. The best crypto interest accounts offer up to 12% interest on stablecoins and will let you earn 6% interest on popular instruments like Bitcoin and Ethereum.

To help you find the best platforms and apps to earn interest on your crypto, I researched and tested the most competitive offerings for putting your digital assets to work. I looked at the top places to earn interest on Bitcoin, Ethereum, stablecoins, and altcoins, and chose the best crypto savings accounts from each category.

🔒 Use a hardware wallet to keep your crypto safe: Consider moving some of your funds to a hardware wallet like the Ledger Naxo X. Hardware wallets store your private keys offline and make you sign all transaction with a separate device. They can’t be hacked unless you share your secret seed phrase.

These are the best crypto interest accounts

Here are the best crypto savings accounts and apps to earn interest, based on years of research:

  1. BlockFi: Best overall place to earn interest, most trusted
  2. Celsius Network: Best rates on most coins
  3. YouHodler: Best potential and best customer service
  4. Binance: Best for advanced users and best for number of coins
  5. CoinLoan: Great European savings solution

With so many players in the market, it may help to compare crypto interest rates side-by-side before deciding on where to put your money. That said, high interests should not be the only consideration for choosing a crypto saving account. Make your own decision and compare these platforms to find one that fits your needs.

Best sites to earn interest on crypto: Full comparison

Below is a comparison of the most trusted platforms where you can earn interest on Bitcoin, Ether, and other major cryptocurrencies.

1. BlockFi

The BlockFi Interest Account is the most widely known and objectively the best overall place to earn interest on Bitcoin, Ethereum, and stablecoins. BlockFi was founded in 2017 and is a fully regulated and licensed bank-like provider of cryptocurrency savings accounts, loans, and exchange services, with financial licenses to operate in 48. U.S. states.

Highlights

  • Welcome bonus of up to $250 for new users
  • Best interest rates on Bitcoin
  • Best-known and most trusted lending platform
  • Backed by $450 million in venture capital
  • Partners with Gemini and BitGo as custodians for its reserves
  • Monthly free withdrawals

Things to keep in mind

  • Not FDIC or SIPC insured
  • Rates are subject to change
  • Only supports USD as fiat currency

With the BlockFi Interest Account, investors can earn up to 8.6% compound interest per year on their savings, borrow cash against crypto, and exchange a variety of coins at competitive prices. With the upcoming BlockFi Credit Card, users will be able to earn Bitcoin cashback on every purchase made. It’s safe to say BlockFi is developing into a fully-fledged crypto bank.

Special offer: Get a free sign up bonus worth up $250 in BTC with our special BlockFi partner link.

BlockFi is arguably the most trusted offering in the line-up of cryptocurrency interest accounts due to its partnerships with blockchain industry leaders and its multiple financial licenses from top-tier regulators. BlockFi is backed by big names like Coinbase and Fidelity and uses Gemini, the most trusted crypto asset manager, as its custodian.

Key features

  • Minimum deposit: No minimum deposit required
  • Fees: $0 monthly/yearly fees; 1 free crypto and stabecoin withdrawal per month
  • Supported coins: BTC, ETH, LTC, LINK, USDC, PAX, GUSD, USDT
  • Bitcoin interest rate: Up to 5%
  • Ethereum interest rate: Up to 4.5%
  • Stablecoin interest rate: Up to 9.3%
  • Other important details: Sign up to the BlockFi card here and earn cashback in Bitcoin

Signing up to BlockFi is free, so anyone who wants to earn interest on their cryptocurrency assets can test for themselves whether they like their services. The Blockfi Interest Account does not require any minimum deposit, balance, and there are no monthly or yearly fees. BlockFi also offers one fee-free crypto withdrawal each calendar month and one free stablecoin withdrawal. 

Read More: Full review of BlockFi.

2. Celsius Network

Celsius Network

Celsius Network is probably the most transparent crypto lending platform in the lineup but also the most profitable for investors. It was founded in 2017 by serial entrepreneur Alex Mashinsky (one of the inventors of VOIP), and now claims around $200m worth of investments and 40,000 active wallets.

Highlights

  • $40 registration bonus for new users with the promo code 12948c145
  • Unlimited free withdrawals
  • Largest selection of coins to earn interest
  • Weekly payouts
  • Transparent company with public data and statistics
  • No weekly or monthly fees

Things to keep in mind

  • Not FDIC or SIPC insured
  • Rates can change on a weekly basis
  • Highest rates requires users to earn in the CEL token

Celsius offers a great mobile-based solution for earning interest on your crypto. Moreover, Celsius partners with a number of high-trust institutions and security firms, which increases the confidence in the company.

Special offer: $40 free sign up bonus in BTC for new accounts with the promo code 12948c145.

Celsius Network sports some of the best crypto interest rates and accept a range of popular cryptocurrencies and stablecoins, including Bitcoin, Ethereum, USDC, PAX, and several others. Moreover, it pays out interest on a weekly basis, with the option to earn more when getting paid in Celsius’ native token CEL.

Key features

  • Minimum deposit: No minimum deposit required
  • Fees: $0 monthly/yearly fees; unlimited free withdrawals
  • Supported coins: BTC, ETH, LTC, XRP, OMG, BCH, ZRX, BTG, ZEC, XLM, DASH, TUSD, GUSD, DAI, PAX, USDT, TGBP, TAUD, TCAD, THKD, EOS, SGA
  • Bitcoin interest rate: Up to 4.4%
  • Ethereum interest rate: Up to 6.35%
  • Stablecoin interest rate: Up to 12.65%

Celsius Network is secured with multi-factor authentication, private key double vaults, encryption, and third-party solutions. Their assets are distributed amongst cold wallets and exchanges for additional security.

3. YouHodler

YouHodler is a European bank-like crypto asset management platform with offices in Cyprus and Switzerland. The firm offers an attractive crypto savings account with high compound interest up to 12% and crypto-fiat loans with high loan to value ratios of up to 90%.

The total number of cryptocurrencies and stablecoins to earn interest on stands at 25, with rewards for BTC at 4.8%, ETH 5.5%, and LINK 6.2%, and stablecoins around 12%. YouHodler has no lock-up periods, and investors are allowed to withdraw or sell their assets at any given time.

Highlights

  • Up to 4.8% interest on BTC and 4.8% on ETH
  • Supports 25 coins and tokens
  • Weekly payouts
  • $150M pooled crime insurance by Ledger Vault
  • Zero weekly or monthly fees
  • No lock-up period or special tokens required to get the best rates

Things to keep in mind

  • Not FDIC or SIPC insured
  • Not available in the US
  • Start-up company

YouHodler’s crypto savings account pays interest on most major coins, including BTC, ETH, USDT, USDC, TUSD, and PAX deposits, as well as BNB, PAXG, XRP, LINK, and XLM. Accumulated interest is paid out once every week, and the weekly interest period starts compounding as soon as you deposit funds into your savings account.

You can also convert between different cryptocurrencies, stablecoins, and fiat currency in the mobile app or web interface directly, and the fees for trading are generally in the low end. YouHodler supports EUR, USD, CHF, and GBP, and supports card and bank transfers.

Key features

  • Minimum deposit: 5 USD in crypto equivalent
  • Fees: $0 monthly/yearly fees; unlimited free withdrawals
  • Supported coins: BTC, ETH, ADA, BAT, BCH, BNB, BSV, COMP, DASH, EOS, ETC, HT, LINK, LTC, MKR, PAXG, REP, TRX, UNI, XLM, XMR, XRP, XTZ
  • Supported stablcoins: DAI, HUSD, PAX, TUSD, USDC, USDT, EURS
  • Bitcoin interest rate: Up to 4.8%
  • Ethereum interest rate: Up to 4.5%
  • Stablecoin interest rate: Up to 12%
  • Other important details: Supports USD, EUR, GBP, CHF fiat transfers

In terms of security, YouHodler partners with Ledger for custody management of client funds in hot and cold wallets, with a crime insurance program for crypto assets up to $150 million. YouHodler’s is a member of the Blockchain Association of Switzerland, which is an independent body that promotes the use of blockchain solutions in Europe. The company’s Swiss arm is also regulated by the local authorities in Switzerland.

Read More: Full review of YouHodler.

4. Binance Earn

Binance Earn is the one-stop crypto interest solution from Binance. With Binance Earn, you get a complete suite of staking and savings products for earning passive income on your crypto holdings without any trading involved. There are more than 60+ cryptocurrencies and stablecoins to choose from and you can earn interest under fixed or flexible terms.

Highlights

  • Largest cryptocurrency exchange in the world
  • Supports the most coins and tokens
  • Highest industry rates through DeFi solutions
  • ETH 2.0 staking support with up to 20% APY
  • Flexible and locked terms

Things to keep in mind

  • Not FDIC or SIPC insured
  • Slow customer support
  • Overwhelming for beginners

Users can select between regular savings products, staking, and DeFi solutions, each with their own risks, terms, and returns. These include: Savings with lexible or fixed terms, Locked Staking, DeFi-Staking, ETH 2.0 Staking, Liquid Swap, Launchpool, and the BNB yield aggregator Vault.

Special offer: Receive a 5.00% lifetime fee discount on all your trades.

If you’re not interested trading but want to increase your holdings, the interest-bearing products from Binance are worthy of choice. While the many features can be overwhelming at first, the savings and staking solutions from Binance could potentially create a passive income if you’re willing to learn how to use them.

Key features

  • Minimum deposit: Varies
  • Fees: $0 monthly/yearly fees
  • Supported coins: BTC, ETH, ETH2, and all other major coins and tokens.
  • Bitcoin interest rate: Up to 7.49%
  • Ethereum interest rate: Up to 20%
  • Stablecoin interest rate: Up to 15%
  • Other important details: Eligible European users can register for the Binance Visa Card and earn up to 8% cashback

5. Coinloan

Coinloan Interest Account

Coinloan is a European-based cryptocurrency lending and borrowing platform licensed and authorised in the EU. The company launched in 2016, and operates under the regulation of the Estonian Financial Supervision Authority, which means it holds a European Financial Licence.

Highlights

  • Licensed and certified platform
  • High yield interest with up to 12% APY
  • Client funds are stored with BitGo and insured for $100 million from Lloyd’s.
  • Intuitive and easy-to-use platform
  • Excellent customer support

Things to keep in mind

  • Not FDIC or SIPC insured
  • Relatively anonymous company with undisclosed team members
  • Lacks transparency

The platform allows you to make passive income by investing fiat currency and stablecoins for a high yield return. As an investor, your deposits are used to create loan offers on the Coinloan platform.

Special offer: Earn 25% rewards of 0.2% of every exchange amount, +0.2% of every loan amount and +0.1% of every interest account holdings (annual rate, rewarded monthly**).

Interest for crypto is accrued daily on your deposit and credited directly to your wallet on the first day of each month. The rates for Coinloan interest account vary but can go up to 12% per year.

Key features

  • Minimum deposit: $100 worth of crypto
  • Fees: $0 monthly/yearly fees
  • Supported coins: BTC, ETH, TUSD, LTC, USDC, PAX, XMR, BCH, USDT, BUSD
  • Bitcoin interest rate: Up to 5.2%
  • Ethereum interest rate: Up to 5.2%
  • Stablecoin interest rate: Up to 10.3%

As for security, CoinLoan stores cryptoassets in offline, cold, multi-signature wallets with the digital asset trust custodian BitGo with $100 million worth of insurance from Lloyd’s. Furthermore, all transactions are done in accordance with Cryptocurrency Security Standard (CCSS).

Read More: Full review of Coinloan.

Comparison of rates from the best crypto interest accounts

To give a better overview, here is a comparison of the top savings accounts to earn interest on Bitcoin and other cryptocurrencies.

RankCompanyStablecoinsBitcoinEthereum
#1BlockFi8.6%6%5.25%
#2Celsius Network10.5%4.74%5.5%
#3YouHodler12%4.8%4.5%
#4Binance12.4%7.40%
#5CoinLoan10.3%5.2%5.2%
Rates were obtained 6 May 2021, but are not guaranteed and may vary on a daily basis

Frequently asked questions

What is a crypto interest account?

A crypto interest account or crypto savings account operates much the same way as a normal savings account. Instead of depositing cash to earn interest, you deposit crypto-assets and earn crypto interest in return.

Are crypto interest accounts safe?

Crypto interest accounts are not insured by any government, but the safest cryptocurrency savings platforms take extreme measures to protect your assets from misuse and hackers. Lenders like BlockFi have complex security systems to minimise counterparty risk and implement automated margin call systems for borrowers. But remember only to invest money that you can afford to lose.

Why are crypto interest rates so high?

Interest rates on cryptocurrencies can be as high as 13% because the crypto lending industry is still in its infancy and the demand for loans is growing exponentially. These blockchain companies make money by lending your coins to borrowers at a higher rate than they pay you as interest. Another reason for the high rates has to do with traditional financial institutions refusing to work with crypto-related businesses.

Is the crypto lending industry regulated?

The best crypto lending and borrowing platforms are licensed by multiple financial authorities as money transmitters (US) or as crypto-asset businesses (UK.)

Should I lend all my crypto for interest?

You should also consider the security risk that arises when you move your crypto assets from the security of your hardware wallet to the lending platforms custodians. Always check if they have insurance in place and to which extent you can be compensated for any loss in the event the account is hacked.

How does crypto lending work?

Crypto lending is the practice of lending digital assets through lending platforms or crypto exchanges for interest. The platform connects you to borrowers, private individuals or institutional trading firms, who back up their loans with tangible security like cryptocurrency or real money. You’ll get your cryptocurrencies back with interest once the borrower repays the loan.

Guide: How to choose a reliable crypto savings account

With interest yield on crypto interest account outstripping those of traditional banking interest accounts, it’s no surprise that investors are flocking to earn interest on their unused cryptocurrencies. While it pays to shop around before deciding on the crypto interest account to invest with, here are some essential factors to consider when choosing the best way to earn interest on crypto:

  • Understand insurance: Can investors keep their digital assets in crypto savings accounts and sleep with both eyes shut? Unlike traditional banking, deposits in crypto interest accounts are not insured by the FDIC or any other government compensation scheme. Keep this in mind when searching for the right interest account to invest in. Keeping your funds in a thoroughly vetted crypto interest account is the best way to earn interest without jeopardizing your entire investment.
  • Security protocols: Research in detail the security protocols of the crypto interest account provider you intend to invest your funds. This is very important as it could mean the difference between falling victim to hackers and thieves and earning some passive income safely.
  • Cold storage: Cold storage refers to storing digital assets in servers in an offline environment, cut off from the internet. This measure is a necessary security protocol that stops theft by hackers. Additional security can be obtained by combining cold storage with mutisignature to create multisig cold storage. Multisgnature is the process of using more than one key to authorize a bitcoin transaction. This eliminates the risk of a single line of failure and makes it tough to compromise the wallet.
  • 2-factor authentication: This is a must if you have any digital assets anywhere. 2-factor authentication is simply, a second layer of security in the form of a unique code generated on an app on your phone. The Google Authentication 2FA is the most popular software-based authenticator, another is Microsoft’s.
  • Bug bounty reward program: To further tighten security, the best crypto lending companies incentivize hackers to detect and report vulnerabilities by offering them a reward. The bug bounty program allows the crypto company to identify and resolve security flaws before they are exploited by criminals and lead to loss of assets.
  • Collateralisation: As an investor, your deposited digital assets are given out as loans to borrowers at an agreed interest rate. The borrowers secure their loans with crypto assets, which are usually far above the loan in value. This is known as overcollaterisation, and it’s in fact, the basis for crypto lending. Overcollaretaisation ensures the loans are paid back on time and in full.
  • Transparency: The authenticity of a crypto company where you intend to invest your assets is defined by how transparent they are with users. Look out for companies that maintain communication with their users. At the point of sign up, you should know about all fees, charges and any other conditions. A reliable crypto company should have active social media accounts and continuously provide updates to its community of users.
  • Track record: Thoroughly research the track record of the interest accounts provider you wish to invest in. Has there been consistent growth with time? Has there been any security breach? With the long history of hacks in the crypto space, and the billions of dollars’ worth of assets stolen so far, you must consider the interest account provider’s security records.
  • Regulation & licenses: Check if the crypto interest account provider has the appropriate licenses to operate in their area of coverage. Dealing with an unregulated company places you at considerable risk since no legal recourse would be available in the event of malpractice or loss. 

Summary: The best crypto savings accounts

Cryptocurrencies are fast becoming mainstream, and an increasing number of companies now offer crypto interest accounts that pay monthly or daily dividends. These companies provide a great investment opportunity for crypto owners looking for ways to generate passive income.

This income is achieved through high-interest loan offers to crypto borrowers. The crypto space abounds with traders looking for Crypto to borrow to overcome capital inefficiencies, amongst other uses. Therefore, the interest rate in the crypto space is considerably higher than that of fiat, with some providers offering rates as high as 15% APY.

With such high-yield, it’s no surprise that crypto owners are increasingly demanding for reliable Crypto interest accounts to put their money to work for them. However, before you invest your hard-earned savings in any crypto interest account, there are many factors to consider. These include interest rate, security protocols, insurance, platform reliability, and others.

The six crypto savings accounts listed in this article are some of the best currently in the crypto space. Some of these allow you to invest crypto and earn interest directly, or invest fiat and earn interest in crypto. By putting your funds in the right interest account and platform, you can hopefully see your digital assets multiply over time.

About the author: Lucas P., a pen name for privacy reasons, is an investor, hobby finance writer, and die-hard FIRE enthusiast. Lucas has previously served as editor for a news outlet in his European home country but now spends his time dabbling with traditional and alternative investments. To learn more about Lucas, visit his profile page.