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Top 5 Crypto Savings Accounts of 2021

Top 5 Crypto Savings Accounts of 2021

    Traditional savings accounts have become less attractive because of their low-interest rates. Thus, many individuals start to look for better-paying options. There are many new low-risk alternatives to regular savings accounts with higher interest rates to explore. But one of these new options has become popular due to its very high-yielding. This option is crypto-based savings accounts.

    Safe and with high-interest rates, crypto savings accounts became a great alternative to traditional savings accounts. And what makes even nicer is that you don’t necessarily need to understand cryptocurrencies to invest in some of these accounts. Most are easy to use and work almost exactly like a regular savings account.

    If you are considering opening a crypto savings account, this article can assist you by providing you with the best options available in 2021. You will also be able to learn what are crypto savings accounts and how they can offer you higher interest rates.

    What Are Crypto Savings Accounts?

    A cryptocurrency savings account allows you to participate in the cryptocurrency market while still earning interest. It is just like a regular bank savings account but focused on cryptocurrency. In some, you will need to invest already in crypto, while others accept fiat currencies. This is how it works:

    For the most part, it works just like regular savings accounts. You put money into a savings account, the institution lends your money to investors, and you earn an interest rate in exchange. However, in the case of crypto savings accounts, the funds for this process will be cryptocurrency.

    So, whenever you create a crypto savings account, you are putting money into a digital currency like Bitcoin or Ethereum. Then, the savings account provider will lend your cryptocurrency to borrowers in return for a portion of interest. You will receive a share of this interest. Since there is a scarcity of money invested in crypto, with more demand than offer, the interest rates of these cryptocurrency loans are very high. That is how these crypto-based savings accounts manage to give their clients interest rates that can go as high as 12%.

    To keep the crypto savings accounts safe, most of them work with overcollateralized lending partners. They also use strategies similar to banks, such as distributing one investor's money throughout many borrowers, assessing investment risks, and so on.

    Still, it is important to be careful. Cryptocurrency is a very new and experimental market. Even though most crypto savings accounts providers take safety measures, it is a volatile market and most of these accounts and not FDIC insured. Like every type of investment, make your due diligence and understand the risks involved in it. Once this alert is given, it is important to highlight that major safety issues with crypto savings accounts that resulted in major money losses are yet to be seen.

    Top Crypto Savings Accounts of 2021

    Now that you know what crypto savings accounts are and how they work, it is time to know which are the best ones. It is hard to point the best provider of this service since they each offer different attributes that make them ideal for someone. Thus, check the following list of the best crypto savings accounts of 2021 to know which one fits more your financial needs and goals.


    Interest Rate: from 0.5% to 7.5%

    Highlight: Affordable

    BlockFi makes high rewards accessible to many crypto investors by having no account minimums. For investors with less than 5 Bitcoin, BitCoin's very high return is appealing (which is likely most investors as 5 Bitcoins is a lot of money). However, ironically, the more Bitcoin or Ethereum you deposit into BlockFi, the lower the interest rate will be. This decreasing interest rate is only valid for certain coins.

    This crypto savings account pays its investors every month and offers the best rates for stable coins (cryptocurrencies whose value is tied directly to that of a fiat currency like the USD). When it comes to fees, it only charges withdrawal fees, which vary depending on the currency.

    BlockFi follows several current best practices in terms of security, such as placing user funds in cold storage, two-factor authentication, and wallet address allowlisting to prevent unauthorized transfers. On top of that, BlockFi’s digital assets are covered by insurance, and cash holdings are FDIC insured up to $250,000

    Outlet Finance

    Interest Rate: up to 9%

    Highlight: Investment made in dollars and interest rate in paid dollars.

    Outlet Finance is a crypto savings app that helps you to collect over 50 times more money than a conventional savings account. It does that by paying you investment dividends on your extra cash. This app pairs you with the top-yielding lender from its network of overcollateralized lending partners.

    What makes Outlet stand out is that it only pays investors in US dollars. This means that to use this crypto savings account, you don’t need to have any experience in cryptocurrency. Users deposit dollars and earn dollar-based interest. This is done through a user-friendly, safe app that is designed to offer investors a seamless experience

    This allows clients to easily navigate through the crypto lending environment. This way, you can take advantage of crypto’s attractive interest rates without needing to have expertise in this field or to take any major risks. On top of all that, Outlet is completely free to use and doesn’t charge any hidden maintenance fees. Outlet holds your funds with SOC II Compliant custody partner.


    Interest Rate: From 1.26% to 7.40% compounded daily

    Highlight: Diverse selection of coins

    Gemini is a well-known cryptocurrency exchange that expanded its services by adding crypto savings accounts to its portfolio. Its crypto savings account is called Gemini Earned. This provider offers a diverse selection of currencies, with 28 currently available. It has daily compounded rates ranging from 1.26 percent to 7.40 percent.

    Gemini Earn charges agent costs that can vary depending on each coin, ranging from 0.04% to 4.3%. cryptocurrency deposits are free. Withdrawals, however, are only free for the first 10 coins each month. Afterward, fees apply depending on the cryptocurrency. While Gemini Earn investments are not insured, borrowers are screened for risk management and go via certified third-party borrowers such as Genesis.


    Interest Rate: 1.25%

    Highlight: Safety

    Similar to Gemini, Coinbase is primarily an exchange platform. But now, it offers a crypto savings account service to its users. As an exchange, Coinbase is very popular among people that are new to the crypto industry because it has over 50 coins to select from and a user-friendly design. As a savings account, it provides a few interest-earning alternatives, but they are restricted.

    Coinbase offers 1.25% APY on deposits of USD Coin (USDC). It charges a variety of transaction and withdrawal fees. On top of that, Coinbase charges a 0.50% spread, depending on the amount, method, and location of the transaction.

    When it comes to safety, Coinbase stands out from most competitors. It uses two-factor authentication, cold storage of customer money, and address allowlisting. Recently, the company purchased $250,000 in insurance for digital assets, as well as $250,000 in FDIC protection for cash holdings.


    Interest Rate: From 0.5% to 8.5% for most cryptocurrencies and 14% for stablecoins

    Highlight: Very high-interest rates for large long-term investments

    Crypto.com is a full-service crypto hub that provides a variety of options for earning income on your cryptocurrency assets. They provide around 35 different cryptocurrencies and stablecoins. But be careful. Crypto.com advertises some of the market's highest interest rates. However, the conditions for obtaining these rates are quite specific. Outside of Crypto.com, investors with smaller amounts of cryptocurrency are likely to find higher returns.

    The interest rates they advertise vary depending on the coin. For cryptocurrencies like Bitcoin, they provide rates ranging from 0.5 percent to 8.5%. For stablecoins like USDC, the yield can be as high as 14%, but only for those very specific conditions. The interest is paid weekly in USDC and withdrawal fees can be charged based on cryptocurrency.

    This crypto savings account demands a larger amount of money being invested and more time to actually earn its very high-interest rates. Thus, this is a better option for long-term investing.

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