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7 Best Crypto Savings Accounts Thumbnail

7 Best Crypto Savings Accounts


While there's still some mystery, skepticism, and hesitance surrounding crypto, the world of cryptocurrencies continues to grow.

For investors that would like to explore the world of cryptocurrency without buying for speculation, using a cryptocurrency savings account is a practical investment that allows you to realize profits while the value of your crypto coins increases. 

But, like everything else about crypto, crypto savings accounts are vastly different from your average bank savings accounts. So getting as much information as possible before testing the waters is critical to help you make the right choice and select the best crypto interest accounts. 

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What Are Crypto Savings Accounts? 

A crypto savings account is just as it sounds. It is an account where you deposit your crypto coins and other digital assets and earn interest over time. The amount of interest you earn with the account differs depending on your savings account type. 

The interest rate might also vary based on your asset type. For example, most crypto savings accounts hold Ethereum, Litecoin, and Bitcoin. Some platforms will also allow you to select the cryptocurrency you receive your interest in. 

How Does a Crypto Currency Savings Account Work? 

A cryptocurrency savings account follows the same principle as a traditional savings account. With a traditional bank, the money you deposit into the account gives the bank permission to loan it out to third parties. Once the money is recovered with interest, the bank pays a specific interest percentage to you each month or annually, depending on the bank. 

With a crypto savings account, your digital currency is your deposit. The platform you choose will loan out the cryptocurrency and give you an interest percentage in exchange. The interest can be paid out monthly or annually, depending on the platform. 

Although a cryptocurrency savings account and a traditional savings account operate on the same principle, there are many differences. 

Traditional Savings vs. Crypto Savings 

Some of the differences between traditional and crypto savings accounts include: 

FDIC Insurance 

The Federal Deposit Insurance Corporation insures most banks. This guarantees that the deposited funds are safe even when the banks loan them out. That means you won't lose money (up to certain amounts) if you save in a bank insured by the FDIC.

Crypto savings are not insured. The market tends to be volatile, and the value of your investment can decrease at any time. This volatility makes crypto savings more like an investment platform and less like a traditional savings option. 

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Access to Funds 

With a traditional bank, you can withdraw your funds at will without fees or restrictions. However, using a crypto savings account will limit your access to funds for a certain period after depositing them. In addition, some platforms will also charge you a withdrawal fee for collecting your digital coins before the approved date. 


This is where investing in cryptocurrency savings accounts shine. Most traditional banks offer an interest rate between 0.1-0.6 percent APY. However, Crypto savings accounts have higher annual percentage yields. 

Compound Interest 

Compound interest is not a factor in crypto savings accounts. So although your initial deposit might grow over time, the interest growth does not compound, which means you have to trade or spend the interest to realize the gains. 

Crypto Savings vs. Crypto Wallets 

If you're new to crypto, chances are you have heard of crypto wallets. These are not the same as crypto savings accounts. They are vastly different in several ways.


Crypto wallets, regardless of the currency, don't accrue interest. The number of coins in the wallet remains the same unless you add the coins yourself. With a crypto-based savings account, the number of coins you own will increase over time as long as the digital coins you use don't fail. 

Key Ownership 

When you deposit your coins into crypto savings accounts, you give up access to your keys, which allows the platform to lend your crypto to other individuals. For some investors, this is unacceptable, so they avoid cryptocurrency savings accounts altogether. 

With a crypto wallet, you don't give up your keys. Instead, only you can add or withdraw the coins from the wallet. 

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Crypto wallets are often deemed to have a weak security system. For instance, losing your phone could mean forfeiting all your money with most of them. Even with a multi-factor authentication system, losing everything is still a real threat. 

By contrast, crypto savings platforms have built-in redundancies that secure the crypto keys. As a result, these platforms take bank security to the next level. 

How Much Can You Earn With Crypto-Based Savings Accounts? 

Crypto interest rates depend on two main factors that will affect the overall earnings or losses. These are: 

  • The price of the coins in U.S. dollars 
  • The interest rate paid by your preferred crypto savings account or accounts

At the moment, some of the top crypto banks pay between 3.2 and 12% APY, which is multiple folds higher than traditional savings accounts. Hence the attention this investment option receives. 

How to Get Started with a Crypto Savings Account 

The first step to getting started on crypto savings accounts is comparing the different options and evaluating which is right for you. There are several factors you should consider when comparing, including: 


Digital coin banks are not insured, and the risk is higher. This is why safety should be your main priority when choosing a suitable Bitcoin savings account or any other coin for that account. Check the financial stability of the company and the mechanisms in place to keep your investment safe. 

Supported Coins 

The supported coins vary from one crypto bank to another. Some support an array of coins, while others are more specific. However, one thing is sure, no account provided will allow you to earn interest on all the digital coins on the market. So, if you already own cryptocurrency, opt for a provider that supports the coins you have. If you don't already have crypto assets, pick one that supports the coins you're interested in. 

Purchase Availability 

Opting for an account that offers a savings account and market access is critical for new investors who don't have any crypto assets yet. It will allow you to purchase cryptocurrencies through various channels, and you also have a savings account at your disposal. 

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Best Crypto Savings Accounts 

The secret to a successful crypto investments account is finding the right place to earn interest in crypto. Luckily, there is no shortage of crypto savings account providers. You just need to find the best one for you.

It's crucial to note that the best cryptocurrency savings account is relative. It differs from person to person depending on your needs and goals. Some of the top crypto savings accounts include: 


BlockFi is easily one of the most highly regarded crypto savings account providers. You can get a BlockFi interest account for up to 10 cryptocurrencies with no minimum deposit and rates ranging from 1.0 to 9.0%, depending on your currency type. The interest is paid out every month. 

BlockFi has among the highest interest rates in the industry and has an impressive security repertoire with cold storage custodian services.  

Besides having impressive interest rates, BlockFi also offers access to low-cost crypto loans with rates as low as 4.5% per year.

BlockFi ticks most essential checkboxes that determine an excellent cryptocurrency savings account for investors looking for the highest interest rates and something more than a Bitcoin savings account.  


Celsius is one of the largest BlockFi competitors. Their better Bitcoin interest rates are what sets them apart. Celsius is an excellent choice if you already have Bitcoin and want a provider that gives you the most competitive Bitcoin interest rates. 

Currently, Celsius is offering 6.2% APY on Bitcoin. This rate is higher than BlockFi, which has an interest rate of 4.5%. Also, Celsius has much higher maximum amounts that earn you full interest in your cryptocurrency. With BlockFi, you can only earn 4.5% on up to 0.1BTC, while Celsius scales the 6.2% to up to 1 BTC. 


Nexo has high-yield cryptocurrency accounts that offer up to 12% interest APY on 17 different crypto coins. The interest is paid daily. But, to enjoy the best rates, you have to be a member of the Nexo loyalty program, which means holding their native coin, the Nexo Token

The interest rates on Nexo depend on the coin you're holding. Bitcoin, Ethereum, and Ripper have interest rates between 4-8%. Stablecoins like USDT, USDC, and cash deposits of major currencies like USD, EUR, and GBP earn between 10-12%. 

The base rates on Nexo are not always as high as other platforms, but they offer bonuses based on factors like payout method, fixed-term or flex, and your loyalty tier. 

Nexo has impressive security features that include 2FA, withdrawal confirmation, and login alerts. The provider has also taken out $375 million in insurance for digital assets. 

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Coinbase takes a no-frills approach to cryptocurrency investments, making it ideal for beginners. Don't expect the best exchange rates or interest rates, but it makes an excellent case for new investors. 

With Coinbase, customers can choose from over 50 different cryptos and a user-friendly interface that accommodates new entrants into the crypto space. However, the trade-off is limited interest-earning options. 

Coinbase offers a return of up to 5.00% on Ethereum. But, not everyone can stake it. You have to apply and join a waitlist to be added. 

Coinbase charges a range of transaction and withdrawal fees depending on quantity, location and method. There is also a 0.50% fee on the spread. 

Security features on Coinbase include cold storage of user funds, two-factor authentication, and address allow listing. 

The company also has $250,000 worth of insurance for digital assets. In addition, they also have FDIC insurance for cash holdings up to $250,000. Other features include crypto-backed loans, but this service is invite-only. 


Gemini is perfect for investors who are jittery and keen on the security of their crypto investment. Initially, Gemini was a well-known cryptocurrency exchange and expanded to offer interest savings accounts. 

Gemini offers 28 different rates ranging from 1.26% - 8.05% APY, compounded daily. Gemini charges fees that vary depending on the coin and range. Fees range from 0.04 to 4.3%. However, you get free crypto deposits, and any withdrawals under ten coins are free. Above that, the rate will vary depending on the coin. 

Unfortunately, Gemini doesn't have any insurance information available in the public domain. But borrowers are comprehensively assessed for risk management and go through accredited third-party borrowers like Genesis. 

Security remains a priority, with most crypto stored offline at different geographically distributed facilities. Other security features include top-of-the-line cyber security, 2FA, and allow listing. Gemini also has a bug bounty to deter potential hackers. 

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Crypto.com is more than a crypto savings account. It is a fully-fledged hub with several ways to earn interest in your cryptocurrency holdings. This crypto bank has over 35 crypto coins and stablecoins that you can choose from. 

The interest rates aren't too bad either. They range from 0.5% to 8.5% for cryptos like Bitcoin and 14% for stablecoins. 

But, these rates aren't for everyone. Achieving the highest interest rates on Crypto.com requires that you take out flexible terms of up to 3 months, stake CRO for up to 6 months, and preferably have stakes that are more than $40,000, which will earn a bonus depending on the term and currency. 

Crypto.com charges withdrawal fees based on the cryptocurrency. Security protocols are top-notch, similar to other providers, including 2FA, cold storage, and FDIC insurance for cash deposits. 


For investors looking for a platform that offers active trading and earning crypto coins, YouHodler is an excellent platform. With YouHodler, you can trade with cryptocurrency and earn interest in your account using the Multi HODL service.

YouHodler operates with up to 25 different cryptocurrencies and constantly adds new ones. The interest rates start at 2.5%  and go up to 8% for crypto and 12.7% for stable coins. 

With YouHodler, the interest is compounded daily and paid weekly. Their rates are flat, so everyone gets their fair share. There are no tiers or requirements for earning more. 

YouHodler offers free crypto deposits. But there are withdrawal fees that vary depending on the currency in question. Most major coins like ETH, BTC, and LTC are free to withdraw, except for the standard blockchain fee. 

Security features on YouHodler are impressive. The provider has $150 million worth of crime insurance, 2FA, and a hot and cold storage mixture. They also can stop withdrawals. 

The Risks of Crypto Savings Accounts 

The returns of crypto savings accounts are exciting and enticing, without a doubt. But you should be aware of risks before going all out on a crypto saving account. Weighing the risks versus the rewards gives you a clearer picture of the investment and whether it's ideal for you. Some of the risks associated with digital crypto savings account include: 

No FDIC Insurance 

Although some cryptocurrency savings account providers have FDIC insurance, this is only for cash deposits and doesn't cover the coins. If the company fails, there's a high chance that your investment will go with it. This is more the case for companies that don't provide the crypto keys associated with their accounts. 

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Loss of Control 

Investors considering using crypto savings accounts have to relinquish their keys to the lending body. Furthermore, because cryptosystems are decentralized, the risk of foul play is very high. 

If the administrator of the crypto bank lends money to third parties and it is not paid back, you could easily lose your assets without any recourse. While crypto banks do their utmost not to betray their investors' trust, giving up your keys is a huge concern. 

Withdrawal Restrictions 

Traditional savings accounts give you full access to your account at any time without a limit to how many times you can withdraw as long as you have sufficient funds. Unfortunately, the same is not the case with a crypto-based savings account. 

Some will have withdrawal limits, like capping the amount you can take from your account. They also may charge hefty fees. These restrictions, though necessary, affect access to your assets. 

Price Volatility 

Price volatility is a concern that is out of everyone's hands. It's just how crypto markets and crypto savings accounts work. Some crypto banks try to mitigate this by paying the interest in a dollar-backed stablecoin. However, if the interest is paid in Bitcoin, you should know that the total balance and payments will fluctuate depending on the market conditions. 

Should You Invest in Crypto Savings Accounts? 

The question now remains, with all the information, benefits, and risks associated with crypto savings accounts, is it a feasible investment option? 

Crypto savings accounts offer higher returns than those provided by a regular savings account or a high-yield savings account. They have remained a popular investment option because of the potential for high returns. They are an excellent choice if you love the thrill of a risk, although most risk factors can be mitigated with proper research and consideration. 

Digging deep into the books, history, and reviews of the crypto banks you're thinking of investing with will ensure you get a clear picture of the financial health of the savings account and increase your chances of success. Especially if you're into investing and trading crypto, you should consider the potential to earn substantial returns on your crypto assets with a crypto savings account.