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High Interest Savings Accounts in 2021
Last updated on 14th December 2020 
Still Earn High Interest on Savings in 2021 – Through USD-tied Stablecoins
Cryptocurrency Stablecoin investments outperform savings accounts with traditional banks. But are they really worth considering? That’s what we’re going to look at in this article.
Today, interest on bank deposits is negligible and even negative in many cases. Stablecoins are a viable alternative. Stablecoins are cryptocurrencies that imitate the role of fiat currency inside the crypto environment. In this article we explain stablecoins in detail: https://www.goodbyebanks.com/stablecoins/
USDT as a Substitute for US Dollars
Tether¹ (USDT) is among the most popular stablecoins that one can choose from today. It is pegged to the US Dollar with a relationship of 1:1, meaning its value is aligned with that of this fiat currency and less susceptible to volatility.
USDT functions on Bitcoin’s so-called Omni Layer as a second-tier currency. It does not have a blockchain. However, it’s also available as an ERC20 token on Ethereum’s blockchain. Some platforms offer very impressive savings account interest rates with USDT.
Highest Interest Savings Accounts
On average, you get 7.2% on USDT stablecoin
On average, you get 7.2% on USDT stablecoin. With banks, you get nothing on your USD. Basically, USDT substitutes USD in the cryptocurrency world, so you still get high interest on your money.
USDT savings are more convenient than savings in non-stablecoin cryptos for some people because this currency is not as volatile. USDT savings accounts are a serious alternative to profitable savings accounts with banks, to the extent that these even exist anymore.
In this article, we’re going to discuss USDT interest with certain cryptocurrency trading platforms and crypto FinTech companies. Read on to find out where to still get interest for your money.
Our top choices are Binance, Kraken, Coinloan, Blockfi, and a few others. Read on to find out what interest rates they offer, how to open an account with them, and other important details.
Comparison of approx. Annual Percentage Yields (APYs) for major Stablecoins
We compared Flexible Savings Accounts which allow principal withdrawals at any time. Some providers also have Savings Accounts with fixed terms which usually come with higher APYs.
| Company | USDT | USDC | PAX | TrueUSD | Terms | |
|---|---|---|---|---|---|---|
 |
9.3%
|
8.6%
|
8.6%
|
|
Details | |
 |
12.7%
|
12%
|
12%
|
12%
|
|
Details |
 |
6%
|
5.31%
|
|
Details | ||
 |
10.3%
|
10.3%
|
10.3%
|
10.3%
|
|
Details |
 |
8%
|
|
Details | |||
 |
12%
|
10%
|
10%
|
|
Details | |
 |
6-8%
|
6-8%
|
6.5%
|
6-8%
|
|
Details |
Details About The Crypto Banking Companies Offering Stablecoin Interest Accounts
BlockFi
Blockfi‘s savings account BIA (BlockFi interest account) comes with annual interest of up to 8.6% on your cryptocurrency. Interest is paid at the beginning of each month and accrues daily. Holders of a BlockFi interest account earn interest on crypto deposits. The interest that is earned compounds, generating revenue for the holder passively.
This information will be more helpful if we put it in numbers. For example, a BlockFi Interest Account holder who gets 6% compound interest and deposits one Bitcoin on April 30 will have a balance of 1.005 BTC at the end of May. While this example may not reflect current rates, the process transpires each month until the client withdraws their balance.
Over a one-year period, the client who made this deposit on April 30 will have an increased balance of 1.062 BTC on April 30 of the next year.
How safe is it to put your money into Blockfi?
Blockfi uses cutting edge security protocols and measures to protect client data, including two-factor authentication.
How to open an interest account with Blockfi?
Opening an account is very easy. There is no minimum balance requirement and no hidden fees.
How Fast is the Process?
It’s very fast. You choose an amount you want to deposit, a type of cryptocurrency, and a period of time to see how much you can earn with BIA.
Binance
Binance has two savings accounts: flexible and locked. You can earn interest on stablecoins or cryptocurrencies and deposit any amount up to $1,000,000.
Payout is daily or at the end of the term. Lockup terms are flexible or with fixed duration of one week, two weeks, a month, two months, or three months.
The platform offers margin funding and does not require a credit or KYC check. More than 180 countries are supported. Unfortunately, deposits aren’t insured. However, Binance is quite stable and completely safe to use.
Interest Rates
Binance’s is a guaranteed interest account, meaning you can earn interest daily with the flexible savings option. Users who are subscribed can withdraw money without incurring penalties.
You can activate the flexible savings auto transfer function if you want to gain interest on idle funds. Binance spot traders tend to do this. The exchange transfers the funds available from your exchange wallet to your savings wallet. This happens automatically. Transfers take place daily at 2:00 UTC. You can enable auto transfer for some or all supported crypto assets.
In terms of fund redemption, Binance will ask you to choose “standard” or “fast” redemption when you sign up for a Flexible Savings account. The standard option allows you to withdraw balances on the following day. The fast option allows for immediate withdrawals. The catch is that you don’t collect interest the day you redeem funds. With standard redemption, you still gain interest for the day you withdrew the funds.
The exchange disables all Flexible Savings accounts deposits from 11:50 pm to 0:10 am UTC every day. When it fills its daily Flexible Savings accounts subscription quotas, it disables deposits for specific crypto assets. Binance recommends subscribing the next day or as soon as possible if the subscription quota is filled for a certain day.
Locked Savings accounts are only fixed-term. These terms are seven days, two weeks, a month, or three months. Funds are sent from the spot wallet to the Locked account after you choose an amount to deposit.
The exchange calls crypto assets in locked accounts “lots”. There is a lot subscription limit for each individual user with a maximum of 5,000 lots per user. At present, the amount of 100 BUSD (Binance USD) equals one lot.
Considering the maximum deposit allowed, the upper limit of funds in BUSD that can be deposited into a locked account is 50,000,000 BUSD per user.
Sometimes customers need to access a locked balance prior to the end of the fixed term. The exchange makes it possible to transfer partial amounts from a locked to a flexible account, which does away with any issues.
How safe is it to put your money into Binance?
All Binance accounts are equipped with anti-phishing codes and whitelisted withdrawal addresses. In addition, they support two-factor authentication (2FA). Users choose the device, which they will be using to access their accounts. Device authorization depends entirely on the user.
How to open an interest account with Binance?
First, log in to your Binance account. It takes minutes to create one. On the top bar, you will see “Earn”. Hover over it and click on “Lending.” Then, select “Products” and choose flexible or fixed deposit. For Flexible Savings accounts, you need to choose a deposit amount. After choosing a product, press “subscribe”.
The exchange will deduct deposit funds from your exchange wallet and transfer them to your account. If you choose Flexible Savings, these funds can be accessed as soon as the following day. Those who prefer Locked Savings need to choose a term.
How fast is the process?
The process is extremely fast and efficient. No KYC is required for Locked or Flexible Savings interest accounts. Binance will only require KYC verification if you want to withdraw more than 2 BTC per 24 hours. Otherwise, the platform allows users to deposit unlimited amounts and doesn’t ask them to undergo KYC procedures.
Kraken
Kraken is heralded as the world’s first crypto bank. On ETH staked on Kraken, one can reckon with a gain of at least 5% and up to 17%. Clients can stake tokens in only a few clicks, with any amount and at any time. The interface is virtually seamless. Under this exchange’s license, it must be completely collateralized out of safety reasons. This is to assuage people’s fears of bank failures.
Kraken’s accounts include digital asset debit cards, qualified custody for institutions, and savings accounts for all asset types. Just like a bank, they engage with commodities, securities, and other assets.
How safe is it to put your money into Kraken?
Kraken is very safe. They employ two-factor authentication and other security measures on par with industry standards.
How to open an interest account with Kraken?
To have your account approved, you need to fund it with an eligible staking asset or purchase such an asset. You can see the list of eligible assets on their website. Your staked assets will earn you rewards twice a week.
You can stake cryptocurrencies and coins. You can earn rewards on them through the exchange’s staking service. For instance, you can buy staking coins like ATOM (Cosmos) and XTZ (Tezos) to earn rewards.
How Fast is the Process?
Other currencies, on which you can stake tokens are Ethereum, Polkadot, and Kusama. At the time of writing, Kraken has promised upcoming support for Flow. Kraken also offers its clients the chance to earn rewards regularly on deposits in EUR and USD, in which respect it is absolutely unique. It is not unlike earning interest from a savings account.
Coinloan
Coinloan launched a flagship product called Interest Account. The crypto-lending platform’s offering is similar to a savings account with a bank. You send BTC to this account if you want to earn interest. The platform accrues interest on your deposit from that day on.
To make money for you, CoinLoan lends some of your money to its other users and earns interest on it, then passes it on to you. They combine Interest Account deposits and make that aggregated amount available to borrowers.
How safe is it to put your money into Coinloan?
Since its founding in 2017, Coinloan has helped thousands of clients from all over the world exchange, borrow, lend, and earn assets. They are based in Europe and are licensed and regulated.
Deposits are stored safely by qualified custodians like BitGo Trust Company.
Bitcoin is not the only asset you can earn interest on with Coinloan. Other options include PAX, BUSD, USDT, USDC, TUSD stablecoins, XMR, BCH, ETH, LTC, and fiat currency (EUR).
How to open an interest account with Coinloan?
You go to the registration page and top your wallet up with your asset of choice. Then, proceed to the Interest Account tab. You can deposit and withdraw assets easily here.
How Fast is the Process?
Signing up and getting started shouldn’t take more than a few minutes.
Youhodler.com
When it comes to crypto savings accounts, YouHodler has a practically infinite list of currencies to choose from. These high yield, low risk savings accounts generate interest of up to 12% annually (excluding compounding interest). Clients of this platform can unlock low risk, high yield investment tools. There are many ways to profit from these digital assets.
12% is more impressive than any “high-yield” conventional bank savings account by anyone’s account. It’s also more than you can get on many other investments. The platform offers its users virtually unlimited flexibility, letting clients deposit and withdraw funds from anywhere, at any time, with ease.
The platform doesn’t charge fees on crypto interest and pays it out weekly. The whole amount of interest that accumulates at the end of each weekly settlement period is deposited in your savings account. You can keep the funds in your account to earn more interest on them in the next settlement term or release and withdraw them. The choice is yours.
How safe is it to put your money into YouHodler?
YouHodler’s interest bearing account guarantees asset security. When it comes to storage, all crypto funds are secured in line with the highest industry standards. The platform does not store all funds in hot wallets (online). They use a combination of cold and hot wallet storage, meaning both online and offline, to make sure funds are as well protected as possible.
How to open an interest account with YouHodler?
YouHodler makes stablecoins such as USDT, PAX, TUSD, and USDC available. You need to exchange your choice of fiat currency into any one of these coins. Then, you must deposit them into a savings account. In the next stage, you hold 80% of the money in the account. This will generate annual interest of 12%.
The remaining portion of the funds are used to make small, speculative wagers in Multi HODL™. These are high-reward, but also high-risk investments. You can establish your own levels of potential profit and risk.
You will keep earning interest on the 80% in the savings account and also earn extra money from your investments in Multi HODL™.
How Fast is the Process?
The platform only requires that you enter your country of residence and a valid email. Then, you must create a username and password for your account. After that, you’re ready to get started.
Crypto.com
Crypto.com’s savings account is called Crypto Earn and it gives you up to 12% annual interest on your crypto deposits with the platform. To begin accruing daily interest, deposit your preferred currency and give your assets a chance to grow.
How safe is it to put your money into crypto.com?
Crypto.com is one of the few platforms to make it crystal clear that cryptos aren’t covered by the Federal Deposit Insurance Act. This applies to cryptos on any exchange or platform with the exception of USDT. As mentioned, Tether is pegged to the USD. FDIA coverage means if the platform goes bankrupt, you’ll lose all your funds with it.
How to open an interest account with crypto.com?
The process has been explained very clearly. From the homepage, go to the Super App Menu and choose your preferred term on the app’s Crypto Earn screen. Select an option to make a deposit with: USDT, OMG, UNI, etc. Interest starts accruing as soon as the deposit is confirmed.
How Fast is the Process?
Getting started will take anywhere from an hour to one business day. You cannot sign up for a savings account if you live or are a citizen of Hong Kong, Malta, or Switzerland. The platform is making efforts to make their accounts available in these countries.
The holding term options are flexible holding or fixed holding, with the latter being one or three months.
Nexo
Nexo is the final one of our choices of platforms with best savings account interest. Following more than a billion dollars in early access requests for their loans and a highly successful public presale, the platform went live in the spring of 2018. Interest on stablecoins is up to 12%. They pay it out every day. You can add or withdraw funds at any time. Custodial assets are insured for $100 million and no minimum contribution is required.
How safe is it to put your money into Nexo?
Apart from having zero fees, the platform features top-quality security. They work with BitGo, a digital asset custodian with a spotless track record in preventing security breaches. Nexo complies with all international AML and KYC standards and relevant regulations. They run privacy and security workshops regularly, making sure their employees stay current on cybersecurity issues.
How to open an interest account with Nexo
You need to register, open a personal or business wallet (free and secure), and add assets to it. You will start earning interest immediately after the blockchain confirms the transaction. As interest accumulates, you earn a passive income. Interest is compounded, meaning the amounts your account is credited with increase every day.
How Fast is the Process?
According to their support, it takes three minutes to sign up and make a deposit. Then, interest begins to accrue. It is credited to your account daily.
USDT Savings vs. Traditional Fiat Money Savings
At the moment, even a 5% interest savings account is unheard of with banks. For example, the Wells Fargo savings account interest rate is up to 0.02% p.a. The Capital One savings account interest rate is slightly better at 0.40%, which is still much less than what you’d get with USDT.