Best Bitcoin Interest Rates of June 2020

Find out which Bitcoin interest account provider is best for you.

Earning Bitcoin Interest

Earning interest on your Bitcoin is an attractive value proposition given the required time investment.

Popular interest account providers have seen significant customer growth over the past year and it’s clear why this is the case: Earning interest on a deflationary asset with a finite supply is an exciting opportunity.

Compare, learn, and get all the necessary details needed to make an educated decision on which Bitcoin interest account provider is best for you below.

What is a Bitcoin interest account?

A bitcoin interest account functions as a digital ‘savings’ account currently only available on centralized platforms. Users research and select their preferred interest account platform, create an account, and deposit their Bitcoins into an individualized account that pays daily, weekly, or monthly interest rates on their Bitcoin balance.

These platforms are able to pay these rates by incorporating an arbitrage business model where they in turn lend out their balance sheets to other customers at a higher interest rate.

Are Bitcoin interest accounts worth it?

Tens of thousands of customers and a rapidly growing expansion of available interest account products from the providers listed below seem to indicate that Bitcoin interest accounts are viable options for investors.

The interest rates offered on these accounts are very attractive when compared to traditional finance savings and interest accounts.

The above being stated, it is important to understand that insurance policies for these accounts have not matured as fast as the products themselves.

Never deposit more Bitcoin than you can afford to lose. Always perform proper due diligence and research before selecting your interest account provider.

Best for Flexible Deposits

BlockFi Logo

Learn More

at BlockFi's Website

BlockFi

Learn More

at BlockFi's Website

  • Bitcoin APY

    6%

  • Rate Variable

    Fixed

  • Interest Payout

    Monthly

  • Terms

    Flexible

BlockFi is a regulated and licensed crypto asset lending platform based in New York. The company began operations in 2017 and now services a global customer base. In 2019, BlockFi introduced compound interest account products to both retail and institutional grade customers.

Pros

Highest Bitcoin Interest rate in the lending market.

Flexible account term, user is free to withdraw at any point.

Available worldwide.

Cons

Interest payments are made at the end of the month.

Users are required to KYC.

Account Balances Not Insured.

Qualifications

Valid government ID.

No minimum account balance.

View Rates on Blockfi.com

Best for Term Deposits

MCO Card Logo

Learn More

at Crypto.com's Website

Crypto.com

Learn More

at Crypto.com's Website

  • Bitcoin APY

    4%

  • Rate Variable

    Fixed

  • Interest Payout

    Weekly

  • Terms

    3 Months

Crypto.com is a multipurpose, centralized crypto asset lending platform with a global customer base. Users can currently earn interest on 15+ crypto assets including stablecoins, Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and more.

Pros

Multiple account options from flexible, 1 month, and 3 months terms.

Manage interest account from a mobile app.

Cons

No compounding interest.

Native Platform Token.

Users are required to KYC.

Account Balances Not Insured.

Qualifications

Valid government ID.

No minimum account balance.

Best for Weekly Payouts

Celsius Network

Learn More

at Celsius Network's Website

Celsius Network

Learn More

at Celsius Network's Website

  • Bitcoin APY

    4.51%

  • Rate Variable

    High

  • Interest Payout

    Weekly

  • Terms

    Flexible

Celsius is a centralized crypto asset lending platform offering interest products to both retail and enterprise grade customers. The company launched in 2018 following a controversial ICO in which over $50M USD was raised. Celsius supports 20+ crypto assets including Bitcoin (BTC), Ethereum (ETH), large market cap altcoins, and every major stablecoin.

Pros

No Minimum Deposit.

Experienced Team.

Weekly Interest Payments.

Cons

Withdrawal Limits for large amounts.

No Compound Interest.

Account Balances Not Insured.

Qualifications

Valid government ID.

No minimum account balance.

Beginners Guide To Bitcoin Interest Accounts

Below we cover rather basic, yet important factors every potential customer should learn about and understand prior to opening a Bitcoin interest account.

Benefits

Bitcoin interest accounts have several benefits including:

  • Considerably higher APY rates compared to traditional fiat savings & interest accounts.
  • Limited time investment required.
  • High transparency with regards to fees and account terms.
  • Withdraw your Bitcoin at any time - without penalty.
  • Compound interest.
  • Daily interest payments.
  • No account balance minimums.

Creating An Account

New users will find that creating an account with any of the interest account providers listed above is an easy, straightforward process. As the legitimate providers are registered financial companies, expect to complete KYC (Know Your Customer) and submit personal information in order for your account to be approved.

Credit checks are not required and customers are usually earning interest on their Bitcoins as soon as their deposits are confirmed.

Typical Provider Fees & Terms

Bitcoin interest accounts offered by reputable providers score quite well in this category:

  • No account balance minimums.
  • No fund lockups.
  • No platform fees.
  • Compound interest.
  • No credit checks.
  • Available worldwide (excluded: sanctioned countries).
  • Variable interest rates.
  • No deposit insurance.

The Importance Of Compound Interest

Compound interest makes all the difference regardless of the asset in question. Assuming a 10% APY, let’s compare the following two interest account scenarios with a time table of 10 months:

Simple Interest Compound Interest
Principals Interest Paid Total Interest Principals Interest Paid Total Interest
1 BTC
0.1 BTC
0.1 BTC
1 BTC
0.1 BTC
0.1 BTC
1 BTC
0.1 BTC
0.2 BTC
1.1 BTC
0.110 BTC
0.21 BTC
1 BTC
0.1 BTC
0.3 BTC
1.21 BTC
0.1211 BTC
0.331 BTC
1 BTC
0.1 BTC
0.4 BTC
1.331 BTC
0.1331 BTC
0.4611 BTC
1 BTC
0.1 BTC
0.5 BTC
1.4641 BTC
0.1464 BTC
0.6105 BTC
1 BTC
0.1 BTC
0.6 BTC
1.6105 BTC
0.1611 BTC
0.7716 BTC
1 BTC
0.1 BTC
0.7 BTC
1.7715 BTC
0.1772 BTC
0.9488 BTC
1 BTC
0.1 BTC
0.8 BTC
1.9487 BTC
0.1949 BTC
1.1437 BTC
1 BTC
0.1 BTC
0.9 BTC
2.1436 BTC
0.2144 BTC
1.3581 BTC
1 BTC
0.1 BTC
1 BTC
2.3579 BTC
0.2358 BTC
1.5939 BTC

Deposit Insurance

As a reminder, the majority of Bitcoin interest account providers do not provide insurance for customer account balances.

Bitcoin is not recognized as money by the vast majority of countries. Therefore, these products do not qualify for the typical state backed insurance policies that we see for traditional finance interest and savings accounts. In the United States for example, customer account balances are generally covered by the FDIC (government agency) for up to $250,000 in the event that the underlying bank providing the accounts defaults.

This being stated, reputable Bitcoin interest account providers such as BlockFi and Nexo custody their balance sheets with insured custodians. These custodians (BitGo, Gemini Custody) typically carry insurance coverage for up to $100M USD in crypto asset value.

Summary of the Best Bitcoin Interest Account Rates

Platform APY Learn More

6%

4%

4.51%

TBA

Frequently Asked Questions

Do Bitcoins earn interest?

Is it difficult to open an account and start earning interest on my Bitcoin?

Are Bitcoin interest account rates fixed?

Can I earn interest on Wrapped Bitcoin (WBTC)?

What happens when I want to withdraw my Bitcoin from my interest account?

Methodology: How We Review And Compare

Our mission is to provide the most informative, unbiased, and useful reviews and comparisons possible for products and services in the blockchain finance industry. Assessments are powered by experts with years of relevant experience.

The Bitcoin interest account providers found in this category have been tested extensively by our team as part of the review process. Factors we analyze in our Bitcoin interest account reviews and comparisons include: APR rates, compound interest, terms and fees, and deposit amounts.

The Blockfer Promise: We do everything in our power to keep content up to date and in the best interests of our audience. Blockfer does not shy away from poor ratings. Products or services that do not meet our reputability standards will be rated as 'Not Trusted'. Compensation from partners does not, and will never, effect our review process.

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