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Best Crypto Savings Accounts in the UK

If you have ever wondered how to grow and earn interest on your crypto holdings without having to buy more coins, then crypto savings accounts might be right for you. These accounts help you to earn interest on your crypto, just like a traditional savings account does. The platform you deposit crypto into will either invest, stake, or lend your crypto assets, and in turn, you will receive interest payments on a daily, weekly, or monthly basis.

The interest payment you receive depends on the amount you have deposited, the type of digital assets you have, and most importantly, the terms and conditions of the platform you choose.

We know you value your crypto assets, and in this review, we will discuss the best crypto savings accounts in the United Kingdom to help you decide which platform to use. You will learn about the best platforms available, including their features, requirements, security measures, pros, cons, and more. Shall we?

1 min read

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Also Consider: Best Crypto Credit Cards

Summary

Below are the best crypto savings accounts in the United Kingdom:

1. Nexo: The best savings account to earn returns at high-interest rates daily

2. BlockFi: A savings account with high security and monthly payouts.

3. Crypto.com: One of the best savings accounts for stablecoins

Nexo

Nexo is a financial service firm that provides crypto-backed loans and allows users to earn up to 10% per year on their savings accounts. Account holders can loan out their cryptocurrencies at favorable rates and use them as collateral for loans. It's suitable for beginners and experienced investors and offers competitive interest rates.

Nexo was established in 2018 and currently has over 4 million users in more than 200 jurisdictions. The company has various strategic partners that help improve its services, and some of these partnerships are with companies like Fireblocks, Ledger, BitGo, CIRCLE, Brink, Securitize, and Jumio. Nexo is also a member of The Bitcoin Foundation, Global Digital Finance, and CryptoUK. Users can start earning interest once they deposit traditional currencies, stablecoins, and digital assets.

How Savings Accounts Work on Nexo

To take advantage of Nexo's services, you must create an account on the platform and go through the KYC procedure. The basic KYC lets you earn interest on digital assets, while the advanced KYC lets you earn interest on fiat currencies. Once you have an account, you can transfer your assets into the account. You can send euros, US dollars, and British pounds from your bank account into your Nexo account. If you are a crypto holder, you can send crypto into your Nexo account from any exchange or wallet.

Once you have successfully sent your asset, you can start earning interest. Since Nexo pays out interest daily, you can start earning interest the next day. Your interest is automatically paid into your savings wallet, so you can earn interest on it too. This means besides earning interest daily, your interest compounds daily.

Nexo currently supports over 35 crypto assets and tokens, including Bitcoin, Ethereum, Nexo token, and Ripple. This makes it versatile since users have more options while transacting with their Nexo crypto savings accounts.

How Is the Interest Rate Determined?

The interest rate depends on the type of asset you have deposited and your Nexo loyalty tier. For each asset, you have two interest rates; the first is the base interest rate that is paid to users with no loyalty tier because they do not hold NEXO tokens. The second interest rate depends on your loyalty tier. The loyalty tier increases as the percentage of NEXO tokens you hold increases.

By holding NEXO tokens, you will grow the interest rates and potentially earn dividends from Nexo. The Nexo coin is Nexo's native token and has some great benefits when used on the platform. It can be used to get discounted fees, free withdrawals, and higher interest rates on crypto stored on the platform.

The FDIC doesn't insure Nexo, but users can still take measures to protect their accounts by using the two-factor authentication system. Nexo also uses cold wallets and offline storage to keep users' funds safe.

Nexo

BEST OVERALL

The highest paying crypto lending platform with daily payouts

The Nexo platform is excellent for investors who love daily payouts and do not mind holding Nexo's native token. Nexo offers interest accounts with one of the best Bitcoin lending rates in the UK and provides credit and debit cards for account holders.

NEXO token

Earn up to 36% lending NEXO

Pros & Cons

It has up to a 90% LTV ratio for its loans

There are many different cryptocurrencies to lend or borrow

It pays interest daily to users

Regulated and licensed to operate across the world

To get the greatest return on this crypto lending platform, you must stake NEXO tokens

Note

Traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC). Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors.

Crypto.com

Crypto.com

Users of Crypto.com, a popular cryptocurrency exchange, can earn interest on their Bitcoin and other cryptocurrencies using the site. With over 50 million users, the platform also provides a Visa card that allows you to earn interest.

How Savings Accounts Work on Crypto.com

Crypto.com offers competitive crypto savings interest rates, allowing users to earn up to 14.5% on their crypto assets. There are over 40 coins to choose from, but the interest rates vary, with up to 6%APY on ETH and BTC.

The platform has its tokens known as CRO tokens. The rewards rates depend on the amount of CRO tokens you have locked up. Your earnings increase as you hold more CRO tokens. For example, if you lock up your crypto for three months, you will get 3% APY on Bitcoin for staking around 400 CRO tokens and 4% for staking at least 4000 CRO tokens.

The rewards rates also depend on the holding term. For example, if you stake at least 4000 CRO tokens for three months, you will get 4% APY, but you will only get 2% for staking the same amount of CRO for a month.

Crypto.com

Best For Saving

Feature-filled lending platform with varying interest rates

Overall, Crypto.com is one of the best crypto savings accounts with several features that appeal to investors looking to invest in cryptocurrencies. The platform offers a savings account, staking rewards, and a mobile app for trading on the go. However, there are some drawbacks to keep in mind, including withdrawal fees and maximum daily withdrawals of 10 BTC.

CRO token

Earn 50% lending CRO

Pros & Cons

Unreasonable CRO staking and maintaining requirements

Prolonged CRO staking periods

You lose benefits if you remove your CRO earlier than six months

Numerous card tiers fit any lifestyle

Note

Traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC). Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors.

BlockFi

BlockFi is a financial services firm that offers high-interest savings accounts and loans secured by crypto assets. Clients of BlockFi may earn up to 8.6% per year on their cryptocurrency deposits, borrow money at favorable rates, and utilize their crypto as collateral for USD loans. BlockFi is one of the most popular cryptocurrency savings accounts and has lent more than $50 million.

BlockFi is a fully licensed, US and UK-based cryptocurrency firm with licenses from the New York State Department of Financial Services (NYDFS) and the UK Financial Conduct Authority (FCA).

How Savings Accounts Work on BlockFi

The BlockFi crypto savings account allows you to deposit crypto on BlockFi and earn between 0.1% and 7% in interest per year, depending on the size of your portfolio and the type of crypto you are holding. The interest is paid out monthly, and the compound interest effect allows you to compound your earnings monthly.

You can earn interest in your BlockFi interest account by holding Bitcoin, Ethereum, Chainlink, Uniswap, and many other crypto assets. There is no minimum deposit, and you can put your crypto to work even if it is a minimal amount.

You will get the highest APY by holding stablecoins like USDT. The APY represents the rate of return on your funds, including the compound interest on your monthly payouts that are automatically reinvested into the account. For example, if you hold $100 of USDT with an APY of 8%, then after one year, you should see $108 in your account.

The interest rate for each coin on BlockFi might be different, but the APY for each coin reduces as the amount you hold increases. For example, you will get 3% APY for holding 0-0.1BTC and 0.1%APY for holding more than 0.35BTC.

On the bright side, you will be allowed to choose the cryptocurrency that you will earn interest in. By default, you will be paid in the currency you hold, but you can change this in the settings. Let's identify the pros and cons of BlockFi.

BlockFi

Best For Security

A licensed lending platform known for its high-interest savings accounts

BlockFi is an innovator in the world of crypto-based savings accounts, and BlockFi users can earn interest on their deposits. However, unlike many other top crypto savings accounts, BlockFi offers compounded interest on deposits. BlockFi also has a very user-friendly interface, making it a straightforward prospect for users to open a crypto savings account with the platform. But, this might not be the right platform for you if you hold a lot of cryptos because the interest rate on each coin reduces as the amount you hold increases.

Pros & Cons

Competitive interest rates with flexible, transparent terms

Minimum loan amounts starting at $5,000

Insured wallets by AON and stored by Gemini which is regulated in NYC, United States

It supports less cryptocurrencies than its top competitors

Note

Traditional brokerage firms and cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC). Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors.

How Do Crypto Savings Accounts Work in the UK?

A crypto savings account is a type of savings account that allows you to earn interest on your cryptocurrency holdings. These accounts typically require you to deposit a specific amount of cryptocurrency, which is then used to generate interest income. The interest rate paid by these accounts can differ based on the underlying cryptocurrency and the terms of the account. Some crypto savings accounts may pay annual percentage yields (APYs) of up to 20% or more.

In the UK, credit unions and banks provide FCA insurance, which protects your money if the institution fails. This type of insurance is often unavailable with crypto accounts. Still, they frequently come with unique coverage as many crypto companies now partner with insurance firms to secure their funds.

How to Choose the Best Crypto Savings Account

When selecting the best crypto savings accounts, there are a few things to consider:

1. The interest rate is the first thing to consider. Make sure to compare the interest rates of various savings accounts before deciding which one to use. Choose the most favorable interest rates but consider other vital factors, such as whether or not you need to stake a platform's native token.

2. The charges. Some accounts may have higher costs than others. Ensure to check for hidden expenses when selecting an account and that no additional fees are included in the deal. Carefully evaluate the withdrawal and transaction fees and ensure they are the right fit for you.

3. The security measures. This is especially vital if you're going to put a large sum of money in your account. Look for features like multi-factor authentication and cold storage.

4. Customer service. It's great to know that you can easily contact customer service if you need help with your account. Go for companies with responsive and efficient customer service to ensure you get answers and solutions when needed.

5. The simplicity of use. Make sure the terms and conditions are not overly complicated for you.

What's Good and Bad About Crypto Savings Accounts in the UK?

Some people believe a crypto savings account is an excellent method to save money, while others believe it isn't as safe as a traditional savings account. Let's examine both sides of the argument so you can decide whether or not a crypto savings account is suitable for you.

Pros

  • A crypto savings account pays a higher interest rate than a traditional one. This implies that you may make more money by saving in a crypto savings account.

  • Many believe a crypto savings account is more secure than a traditional one. Your funds are kept in a decentralized network, making it less susceptible to hacking.

  • A crypto savings account is an excellent strategy to diversify your holdings. This is because you may invest in various cryptocurrencies, each with its benefits and drawbacks.

Cons

  • The FCA does not insure crypto savings accounts. This implies that if the exchange where you are keeping your money goes bankrupt, you will not be able to recover your funds.

  • Because only a few exchanges provide this service, locating one with a decent interest rate and security may be challenging.

  • Crypto savings accounts are subject to volatility. This implies that the value of your money will fluctuate depending on market conditions.

Those are some of the advantages and disadvantages of crypto savings accounts. Based on these factors, you must decide whether these accounts are a good fit for you. A crypto savings account may be a good choice if you want to store your money safely and securely. If you're searching for a method to make more money, there are many alternatives you can try.

Are Crypto Savings Accounts Safe, and Do They Have FCA Insurance?

When saving money, most people are accustomed to keeping it in a bank account. After all, the FCA insures banks, so your money is secure if the bank goes bankrupt. But what about crypto savings accounts? Are crypto savings accounts as safe as traditional savings accounts?

The long answer is that the FCA doesn't cover crypto savings accounts. This implies that if the exchange where you keep your funds fails, you may lose all of your money. As a result, it's essential to keep only as much money in a crypto savings account as you're willing to risk losing.

Of course, this does not imply that crypto savings accounts aren't safe. Many exchanges have robust security procedures in place to safeguard your cryptocurrency assets. If you maintain a minimum balance in your account, the danger of losing everything is much reduced.

A bank account is still the best alternative if you're looking for a secure option to store your money. However, if you're okay with the risks, a cryptocurrency savings account may be an excellent way to build your wealth.

Regulated crypto platforms like Nexo and BlockFi have insurance to safeguard your crypto savings accounts.

How to Open a Crypto Savings Account in the UK?

To create a crypto savings account, you must follow these steps:

1. Choose a good crypto savings account. There are several providers to select from, so conducting some research is critical to identify the best one for you.

2. Create a user account with the selected provider. This will usually include providing personal information and proving your identity. You will be required to complete the KYC registration and provide a government-issued means of identification.

3. Make a deposit. You can deposit fiat currency or crypto. The type of deposit depends on the cryptocurrencies supported by the platform you want to use.

4. Set up a new crypto savings account and start saving. Your crypto savings account will automatically accrue interest. The interest will be paid daily, weekly or monthly, depending on the platform's rules.

The Takeaway

If you're searching for the best crypto savings account in the UK, we recommend checking out some of the options listed above. Each of these crypto savings account providers has its advantages and unique features, so conduct your homework first. When choosing a crypto savings account, we always recommend putting safety and security above all. This means picking a provider with the best regulations and insurance. Also, if you need a quick money boost, remember that many of these crypto savings accounts also provide fiat loans against your cryptocurrency holdings.