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More and more platforms are offering crypto interest accounts in 2022, so investors like myself can earn regular interest income by holding cryptocurrencies. Crypto interest accounts allow you to deposit your coins for a given period of time to earn interest, just like traditional savings accounts.
The main difference is that some accounts offer more than 10% interest per year for your crypto.
In this article, we will compare the 5 best crypto interest accounts in 2022, which include BlockFi, Coinbase, Gemini, Binance, and Kraken. Then, you will be able to decide for yourself which platform’s offerings are the best for your needs and goals.
Best Crypto Interest Accounts – A Quick Comparison
Earning interest from cryptocurrency is becoming more and more common during the recent years as investors are looking for alternative places to generate income due to the negligible savings rates in traditional bank accounts.
Different interest accounts target different customer segments. For example, an interest account might target Bitcoin and Ethereum investors by offering them the highest interest rates available in the market, while another platform may target stablecoin investors by offering them rates that are significantly higher than what people get with savings accounts in traditional banks.
With that said, here is a comparison of the interest rates offered by the top 5 crypto accounts for the two most highly demanded cryptocurrencies — Bitcoin and Ethereum:
Bitcoin:
| Deposit Size | BlockFi | Gemini | Coinbase | Kraken | Binance |
|---|---|---|---|---|---|
| 0 - 0.10 BTC | 4.5% | 1.01% | NA | 0.25% | 5% |
| 0.10 - 0.35 BTC | 1% | 1.01% | NA | 0.25% | 0.8% |
| 0.35 - 0.5 BTC | 0.1% | 1.01% | NA | 0.25% | 0.8% |
| > 0.5 BTC | 0.1% | 1.01% | NA | 0.25% | 0.1% |
Ethereum:
| Deposit Size | BlockFi | Gemini | Coinbase | Kraken | Binance |
|---|---|---|---|---|---|
| 0 - 0.2 ETH | 5% | 1.26% | 4.5% | 4% | 2.4% |
| 0.2 - 1.5 ETH | 5% | 1.26% | 4.5% | 4% | 0.1% |
| 1.5 - 5.0 ETH | 1.5% | 1.26% | 4.5% | 5% | 0.1% |
| > 5.0 ETH | 0.3% | 1.26% | 4.5% | 7% | 0.1% |
The 5 Best Crypto Interest Accounts For 2022
When compiling this list, we looked at the crypto interest rates on BlockFi, Gemini, Coinbase, Kraken, and Binance, and compared everything from daily rates to annular rates.
Before placing any money into a crypto investing app, though, be sure to do your own due diligence and consult with a financial professional as needed.
1. BlockFi
BlockFi is one of the oldest interest-offering platforms in the crypto market, which started with offering interest for your Bitcoin. Then the product range has expanded in line with the general growth of the market.
A critical thing to note about BlockFi is that as of February 14, 2022, the BlockFi Interest Account is no longer available to new U.S. persons and that existing U.S. customers cannot deposit any new assets to their interest accounts.
For other customers, BlockFi currently gives the best interest rate for Ethereum up to 1.5 ETH, and the best rate for stablecoins up to a $20,000 investment.
Currently there are 23 cryptocurrencies that give interest on BlockFi including seven different stablecoin assets. BlockFi uses a tiered interest structure for stablecoins and major cryptocurrencies like Bitcoin and Ethereum.
The interest rate drops with increasing deposit amounts. Below you can find all applicable rates for these coins, as well as the rates for some other major coins:
| Cryptocurrency | Deposit Size | Annual Interest Rate |
|---|---|---|
| Bitcoin | 0 - 0.1 BTC | 4.5% |
| Bitcoin | 0.1 - 0.35 BTC | 1% |
| Bitcoin | > 0.35 BTC | 0.1% |
| Ethereum | 0 - 0.2 ETH | 5% |
| Ethereum | 0.2 - 1.5 ETH | 5% |
| Ethereum | 1.5 - 5.0 ETH | 1.5% |
| Ethereum | > 5.0 ETH | 0.3% |
| Tether | 0 - 20,000 USDT | 8% |
| Tether | 20,000 - 10,000,000 USDT | 7% |
| Tether | > 10,000,000 USDT | 5.5% |
| USD Coin | 0 - 20,000 USDC | 8% |
| USD Coin | 20,000 - 10,000,000 USDC | 7% |
| USD Coin | > 10,000,000 USDC | 5.5% |
| Gemini USD | 0 - 20,000 GUSD | 8% |
| Gemini USD | 20,000 - 10,000,000 GUSD | 7% |
| Gemini USD | > 10,000,000 GUSD | 5.5% |
| Solana | No Limit | 5% |
| Cardano | No Limit | 5.5% |
| Polkadot | No Limit | 9.5% |
| Avalanche | No Limit | 10% |
| Polygon | No Limit | 11% |
Note that the interest rates for coins excluding Bitcoin, Ethereum, and stablecoins are fixed regardless of your deposit amount.
Best Ethereum And Stablecoin Account For Small Investors
BlockFi offers the highest interest rate in the market for small Ethereum investors (up to 1.5 ETH) and the best rate for small stablecoin investors up to 20,000 USD of budget. It additionally offers one of the highest rates for Avalanche and Polygon, which are two other highly popular coins nowadays.
On BlockFi, crypto interest payments are deposited to customer wallets on the last business day of each month. If you keep the interest in your wallet, BlockFi gives monthly compounding interest for the total sum.
This means when you earn interest in Month 1 and do not withdraw it from your account, your next interest payment will be calculated off of your new total balance, which would in practice increase the annual interest rate for your funds.
2. Gemini
Gemini is the best platform for Bitcoin and stablecoin investors without any deposit limits.
On Gemini Earn, there are no different interest tiers that drop with increasing deposit sizes, so you get a fixed interest rate at any deposit amount.
Although Gemini Earn has highly convenient and profitable interest accounts, its services are currently available only in the U.S., Singapore, and Hong Kong.
There are currently 44 different interest-offering crypto assets on Gemini Earn. Here are the available interest rates for the most notable ones:
| Cryptocurrency | Annual Interest Rate |
|---|---|
| Bitcoin | 1.01% |
| Ethereum | 1.26% |
| Stablecoins (GUSD, USDC, UST) | 8% |
| Filecoin | 7.26% |
| Axie Infinity | 6.83% |
| Dai | 6.43% |
| Bitcoin Cash | 5.12% |
| Terra | 4.52% |
| Tezos | 2.05% |
| Solana | 5% |
| Polygon | 11% |
Best Overall Account For Bitcoin And Stablecoin Investments
Because there are no interest tiers on Gemini, you can get the best rates for larger Bitcoin and stablecoin deposits compared to BlockFi and other competitors.
It is also worth noting that on Gemini Earn, interest is paid to your account daily at 4 p.m. EST every day, in contrast to BlockFi’s monthly interest payments.
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3. Coinbase
Although Coinbase is known as a truly global cryptocurrency exchange, which is available in over 100 countries, its interest products are highly limited.
On Coinbase, you can earn interest on 5 different cryptocurrency assets only. There are also no interest tiers on Coinbase like on Gemini, so you get the same interest rate for any deposit size.
On the other hand, Coinbase offers one of the best interest rates for Ethereum regardless of your deposit size.
Here are the interest rates you can earn for the available cryptocurrency assets on Coinbase:
| Cryptocurrency | Annual Interest Rate |
|---|---|
| Ethereum | 4.5% |
| USDC | 0.15% |
| Dai | 2.55% |
| Tezos | 4.6% |
| Cosmos | 5% |
As you can see in the above table, the interest rate for USDC is even worse than the current US Dollar savings rates at banks, but the rate for Ethereum is exceptionally good without any limits.
Coinbase deposits the interest payouts monthly, just like BlockFi. Interest rewards are distributed to customer wallets within the first 5 business days of the following month.
One Of The Best Accounts To Earn Interest For Ethereum
Ethereum deposits on Coinbase are “staked” on the Ethereum blockchain network, which means you receive your interest from the Ethereum network, not from Coinbase.
Depositing on the network also means there can be no interest payouts until the maturity date, which can vary between 30 and 120 days. If you withdraw your ETH from Coinbase at any time during the staking period, you will forfeit all the interest you have accrued so far, unlike in regular interest accounts where you would have received the accrued interest amount.
However, due to this very reason, Ethereum staking typically returns higher yields compared to regular interest accounts. On the downside, staking rates are very volatile and can change a lot depending on market conditions.
The current 4.5% rate for Ethereum is valid for only 90-120 days from today, which may change significantly afterwards.
4. Kraken
Kraken’s interest accounts consist of staking services only, but they generally offer attractive rates if you can survive without receiving interest payouts throughout the staking period.
Kraken is generally the best platform for staking large cryptocurrencies.
You should additionally note that Kraken is not available in all 50 U.S. states. Customers in Washington and New York cannot access Kraken's services at all, while other U.S. users cannot stake the popular Terra coin on Kraken.
Below are the rates on Kraken for the stake-able cryptocurrencies offered on its platform. Note that Kraken does not offer interest for stablecoins.
| Cryptocurrency | Annual Interest Rate |
|---|---|
| Bitcoin | 0.25% |
| Ethereum | 4 - 7% |
| Cardano | 6% |
| Solana | 5% |
| Terra | 4.52% |
| Polkadot | 12% |
| Cosmos | 12% |
| Tezos | 2.05% |
Best Account For Large Staking Investments
Although Kraken offers a fixed reward rate for the crypto assets on its platform, it has a tiered structure for Ethereum. On Kraken, the specific yield for Ethereum depends on your deposit size.
So for large ETH investors, Kraken offers up to 7% per year, which is significantly higher than both BlockFi’s off-chain interest accounts and Coinbase’s on-chain staking accounts.
5. Binance
Binance.US is by far the largest cryptocurrency exchange in the world and it offers interest for 145 cryptocurrencies and staking for 104 different coins.
Binance.US is the best platform for staking smaller, more volatile cryptocurrencies.
Like BlockFi, Binance.US uses a tiered interest structure for Bitcoin, Ethereum, and stablecoins. But tiered interest rates do not end there on Binance.US. There are significantly reduced rates for almost every major cryptocurrency on Binance.US when you exceed even the smallest thresholds.
Below are all applicable rates for the major cryptocurrencies and stablecoins on Binance.US:
| Cryptocurrency | Deposit Size | Annual Interest Rate |
|---|---|---|
| Bitcoin | 0 - 0.1 BTC | 5% |
| Bitcoin | 0.1 - 0.35 BTC | 0.8% |
| Bitcoin | > 0.35 BTC | 0.1% |
| Ethereum | 0 - 0.2 ETH | 2.4% |
| Ethereum | >0.2 ETH | 0.1% |
| Tether | 0 - 2,000 USDT | 10% |
| Tether | 2,000 - 75,000 USDT | 3% |
| Tether | > 75,000 USDT | 1% |
| USD Coin | 0 - 75,000 USDC | 1.2% |
| USD Coin | > 75,000 USDC | 0.3% |
| Cardano | 0 - 1,000 ADA | 1% |
| Cardano | > 1,000 ADA | 0.5% |
| Avalanche | 0 - 5 AVAX | 3% |
| Avalanche | > 5 AVAX | 0.2% |
| Terra | 0 - 5 LUNA | 3% |
| Terra | > 5 LUNA | 0.2% |
The interest from Binance.US interest accounts is distributed directly to your account on a daily basis.
As you can see in the above table, Binance.US offers good rates only for the smallest investors. For example, it offers the highest interest rate for Bitcoin up to 0.1 BTC deposits ($4,000 in current prices), and the highest rate for the Tether stablecoin up to 2,000 USDT. Beyond that level, it offers quite sub-par rates in comparison to its competition.
Best Account For Staking Small-Cap, Volatile Cryptocurrencies
Where Binance.US fails to deliver for larger investors, it makes up for in the staking department. Below is a screenshot of the largest staking interest rates you can find on Binance.US by staking the below coins on Binance.US:
But you should carefully note that the above list consists of highly volatile cryptocurrencies, so the money you make in US Dollar terms will most likely fluctuate sharply. The only way you could make better income with such coins, compared to getting interest from safer bets like stablecoins or Bitcoin and Ethereum, is if there is an ongoing bull market.
Otherwise, in a bear market you could come out with significant losses on your principal investment.
Finding The Best Crypto Interest Account In 2022
Finding the right crypto interest account for you depends on your investment budget and your general risk appetite.
Gemini is the best overall platform for Bitcoin and stablecoin investors, offering 1% and 8% yearly interest rate regardless of your deposit amount.
If you are an Ethereum investor, Kraken gives the best rate for large investors at up to 7% per year. But if you are a small Ethereum investor with less than 1.5 ETH, BlockFi would give you the best rate at 5%.
On the other hand, if you want to take higher risks with your crypto investments, you can choose the interest accounts of smaller cryptocurrencies on BlockFi such as Polkadot, Avalanche, and Polygon regardless of your investment size.
