Best Cryptocurrency Savings Accounts For Passive Income

A new financial product that allows individuals and organizations holding crypto assets to earn high annual interest on the amount deposited in digital currencies is now available with couple of young FinTech companies. The percentages customers can get from cryptocurrency savings accounts exceeds the average interest offered by traditional banks by far – which is currently nearly zero.

Min. Deposit
Binance crypto savings accounts



Min. Deposit

No Minimum stated

Interest (annual)

up to 14.49%


at any time (with Flexible Savings products)
Kraken crypto savings accounts



Min. Deposit

~1 USDT equivalent

Interest (annual)

up to 20%


at any time



Min. Deposit

No Minimum

Interest (annual)

up to 7.5%


at any time
Unchained Capital



Min. Deposit:

No minimum stated

Interest (annual):

up to 12%


at any time
(interest will be lost
in case of early withdrawal



Min. Deposit


Interest (annual)

up to 12%


end of individual
loan term


(BTC, ETH, XRP soon)

Min. Deposit

Stablecoins: $1
EUR: EUR1000

Interest (annual)



at any time savings accounts


BTC, ETH, USDC, USDT, LTC, BNB and some more

Min. Deposit

~$200 equivalent

Interest (annual)

up to 10%


at any time
*There are special terms for ETH staking with Kraken – make sure to read them before starting a staking contract with this provider:

Bitcoin & Cryptocurrency Interest Accounts

Stablecoin savings accounts are a modern alternative to traditional savings accounts with banks. Stablecoins are cryptocurrencies that are tied to the US Dollar and some FinTech companies offer savings accounts with high returns on those digital assets, e.g. with USDC (Coinbase stablecoin).

Stablecoin savings accounts are the only possibility today to still get reasonable interest on savings while banks often even already charge negative interest. So people have to pay money for leaving their savings with banks – unbelievable. That’s why it is worthwhile to consider such alternative saving possibilities the world of cryptocurrency offers.

It goes without saying that you should always research the risks in advance. But risks are involved in everything, also in the traditional banking system. Think of banking crisis, bank failure, hyperinflation, expropriation etc. – things that all have already happened several times in history, that can threaten your savings.

The new financial products are offered by couple of companies based in the US and Europe offering cryptocurrency related financial services to international customers. These are crypto-active accounts, similar to savings accounts that are opened in traditional banks, which are activated by maintaining a minimum balance of Bitcoin (BTC) or Ethers (ETH).

BTC savings pigIn this way, by keeping this amount of BTC or ETH deposited, interest is generated in either of these two crypto currencies. The option is offered as an alternative for investors who tend to cold store their assets for the purpose of maintaining them for the long term.

Interest on deposits in cryptocurrencies will usually be paid monthly, but depends on the provider, and can be accumulated by the holders, in order to increase their annual return up to 12% (the exact rate depends on the agreed terms). Customers can make withdrawals from their funds in one day, although the processing might take up to couple of business days.

In the case of BlockFi, the accounts, whose assets will be safeguarded by Gemini Trust Company and used to make institutional and corporate loans, can be opened by people from all over the world. However, there are limitations for users who live in countries placed on international watch lists, or located in New York, Connecticut and Washington, in the United States. This is probably due to the fact that the regulations of these states require permissions to operate products related to crypto assets.

This idea of offering profits on balances in cryptocurrencies isn’t new. In 2017, Coincheck announced bitcoin savings accounts that paid interest. Also the exchange platform Uphold offers products called Uphold Borrow and Uphold Earn, which allow to earn between 2 and 9% interest on crypto coins.

Types of Cryptocurrency Savings Accounts

Couple of years ago the first providers of such crypto related financial services where P2P lending platforms, where lenders would earn interest on their deposited collateral. Borrowers would get this collateral as a loan and would have to pay interest directly to the lender (for whom this would therefore be kind of a savings account). The loan happened between the users, and the platform served only as a middleman.

Basically, with P2P lending platforms of this kind, there was a relatively high risk that borrowers would not repay their loan and that lenders would not get their collateral back. In this case the borrower would receive a bad rating on the platform and probably not be able to use it in the future anymore. But still the money would be gone. This risk is certainly the main reason why this system wasn’t able to assert itself.

However, the situation has changed and there have come up way smarter and more secure services. Coinloan, for example, is also a P2P Lending platform, but their system offers a high level of security. With them, borrowers have to deposit a crypto collateral in exchange for a cash loan.

In case the borrower can’t pay off his loan, the lender gets the cryptocurrency collateral. With such lending companies people cannot get a loan anymore without providing security form their side, in the form of cryptocurrency collateral. This is why lenders investments are save.

The other possibility are financial service companies (keyword FinTech) offering cryptocurrency savings accounts as well as loan, but not P2P. So you’ll have to contract with the company, not with other users. In this case, you deposit your Bitcoin as a collateral and receive monthly interest from the company, not from people who take the deposit as a loan.

This may be the case in the background, but as a savings account customer you might not need to care about from where the company gets the interest paid. As you have the interest contract directly with the company, not with a private borrower.

How exactly do Bitcoin Savings Accounts work?

Setting up a Bitcoin savings account is super easy thanks to these modern FinTech companies. Just go to the website, log in and verify your identity, and you have access to a savings account to which you can make a deposit.

What is the Minimum Deposit for a Bitcoin Savings Account?

The minimum deposits vary from provider to provider and start at $1.

How secure are Bitcoin Savings Accounts?

It’s best to look for a company that is regulated and licensed as official financial service provider. For long term storage of your coins better avoid offshore companies where you don’t really know if you are putting your money into a scam.

Better take a company that is under financial supervision which means that they have to guarantee the security of their customer deposits. With regulated financial services cryptocurrency deposits are kept safe with regulated third-party custody services and customers can be sure that they can pay out their deposits at any time.

What is the term of BTC/crypto Savings Accounts?

As a rule, users can determine the term themselves. You get interest as long as you leave your coins with the provider, and always exactly to the amount of the deposit. If you pay out a part of your deposit, i.e. reduce the deposit, you get accordingly less interest. There is no minimum or maximum term in this sense.

Where does the Company get the Interest from?

Of course such companies do other financial transactions in the background, whereby the interest on customer deposits is earned. These are usually loans that are granted to other customers and which, of course, have to pay interest. Other speculative transactions are also possible, similar to what banks do. The main thing, however, is that you get the interest from the company, and that the deposit is safe and can not be stolen, until you get it back again.

How much Interest do you get?

The amount of interest you can earn on your coins depends of course on the provider. But they are basically much higher than you can get on your money at any traditional bank today. In any case, you get a few percent a year on cryptocurrencies.

Millennials Prefer Crypto Savings to Traditional Assets

The incredible growth of the crypto money market in the last year makes Bitcoin a very attractive investment. People who bought Bitcoin earlier this year now enjoy a return on investment of 820%. That, of course, is much harder to achieve with the interest rates of traditional savings accounts in physical banks. Millennials (people born between 1981-1996) are beginning to take note.

A new report on the subject suggests that this generation of investors is avoiding savings accounts in favor of buying Bitcoin. Baby-boomers can now go and add “savings accounts” to the list of things the millennials are ruining.

The report in question is based on a survey conducted by It says a growing number of Millennials choose Bitcoin over savings accounts to “store their wealth. Partly because the interest rates offered by such conventional accounts are often disappointing by comparison.

What Millennials Want From Their Investments

According to the report, 60% of Millennials are not satisfied with the interest rates on their savings accounts, only 10% are satisfied with them. The remaining 20% of respondents simply don’t have a clear opinion.

Meanwhile, 65% of respondents consider Bitcoin to be “safer” for storing capital. 30% feel the opposite, while only 5% are unsure. It should be noted that of the ten thousand Millennials surveyed, 61% bought Bitcoin last year, 29% are considering it and only 10% do not know what Bitcoin is.

However, Millennials are not interested in wiping banks off the face of the earth. On the contrary, as 45% of respondents say they would like their bank to offer Bitcoin-based savings accounts. This can be an interesting opportunity for the evolution of the conventional financial sector. On the other hand, 35% of respondents are unsure about joining banks and cryptocurrencies and 20% reject the idea.

Millennials and Cryptocurrencies

Millennials not only are interested in Bitcoin but also in other cryptocurrencies of the ecosystem. Two thirds of the women surveyed and a quarter of the men have also invested in Ethereum. This cryptocurrency is still the second most valuable. The remaining respondents still do not take risks.

“The younger generation has been notoriously quicker to act on new technologies, as happened with smartphones. This has allowed Millennials to invest in Bitcoin even before financial institutions started getting involved.

When you compare very small profits to exorbitant profits for the same amount of investment, the answer is obvious. Bitcoin or any other cryptocurrency represents a much more fruitful bet than bank interest rates. No wonder Millennials decide to invest in cryptocurrencies instead of putting their money in banks. In fact, perhaps baby boomers and previous generations should think about heeding this reasoning.

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