Ethereum Lending Rates: Compare Best ETH APY
Compare the best Ethereum (ETH) lending rates from 22 leading platforms, including FTX, and earn up to 10% APY.
Latest Ethereum Lending Rates APY
Invite friends and earn up to $1,000, paid out in Bitcoin
775,000,000 USD for theft, hacking, loss of keys and more
Earn 2% more when opting to earn interest in NEXO tokens
No current offers
$100M insurance included
Earn higher interest and pay lower fees when staking their CLT token
How to Earn Interest on Ethereum?
Holding Ethereum has been very profitable for many crypto enthusiasts. But is hodling enough to maximize your profits? No, as there is a better way to earn even more on your Ethereum holding. Depositing your Ethereum holdings to Ethereum interest accounts can multiply your earnings. Follow these steps to start earning interest up to 18.01% on Ethereum:
- Sign up for an Interest Account
To earn interest on your Ethereum holdings, you will have to sign up for an Ethereum interest account. To sign up, you will have to submit your legal name and email address on the website of an interest account provider.
- Verify Your Account
Once you have signed up with your legal name and email address, you will receive an email from the interest account provider. Click on the verification link that is mentioned in the email.
Once your email address verification is complete, you can log in with your email and password that you set while signing up for an account. After you are logged into your account, you will have to submit your details along with a government-issued identity card to verify the personal information that you submitted. You will also have to submit a photograph of yourself holding the identity card during the KYC process.
If you are opting for a DeFi interest account provider, you won't have to go through the signup and KYC process. DeFi interest account providers don't require their users to sign up or submit their documents for an interest account.
- Deposit Your Ethereum
Once your KYC is approved, it's time to deposit Ethereum into your interest account. To deposit Ethereum, login to your interest account and go to the page that provides a list of available deposit options. You will find Ethereum mentioned in the list. Click on the button to deposit Ethereum. You will see a unique Ethereum wallet address.
Copy the Ethereum wallet address and paste it in the withdrawal section of your wallet, from where you will be withdrawing Ethereum. Enter the amount of Ethereum that you want to deposit to your Ethereum interest account and click on withdrawal. You will soon receive the withdrawn Ethereum in your interest account.
- Start Earning Interest
The interest accrual will begin immediately as soon as your interest account receives an Ethereum deposit. Depending on the interest account provider you select, you will receive up to 18.01% APY on your Ethereum deposits.
Why Earn Interest on Ethereum?
You can multiply your Ethereum holdings by earning interest on your Ethereum deposits. It's better than only relying on the price appreciation of Ethereum. You can earn interest as high as 18.01% on Ethereum, which is far higher than what many traditional banks and other financial institutions offer on fiat currencies.
- Easy Process
You can start earning interest on your Ethereum deposits after completing a few easy steps. Sign up for Ethereum interest accounts, complete the KYC process, and deposit interest to your interest account. That's it, as your interest accruals will begin automatically as soon as your interest account receives Ethereum deposits.
If you are opting for an interest account from a DeFi interest account provider, you won't even have to sign up for an account or go through the KYC.
- Low Risk
Compared to the products offering similar high interest rates, earning on your Ethereum deposits is a low-risk option. Such high returns are possible as interest account holders lend cryptocurrencies and fiat currencies to borrowers at very high-interest rates and share their earnings with interest account holders in the form of interest. Most interest account providers manage the risk by making over-collateralization mandatory to borrow from them.
- Passive Income
Earning interest on your Ethereum holdings makes earning money in your sleep a reality. So, deposit Ethereum and start earning money even while you are asleep.
Where can I earn Interest on Ethereum?
When it comes to Ethereum interest account providers, you have a variety of options available to choose from. But when it comes to the best options available to earn interest on Ethereum, Nexo, YouHodler, and Swissborg lead the tally.
Your interest earnings will depend on the criteria that the Ethereum interest account providers follow. Calculate the amount that you will earn on your Ethereum deposit by using our Ethereum interest calculator.
You can earn interest as high as 8% on your Ethereum deposits on Nexo. But it is mandatory to hold 10% of your investment portfolio in NEXO tokens, to become eligible for the highest interest rate offered by Nexo, otherwise you can earn up to the standard rate.
Nexo offers two types of interest accounts to their users, and these are known as the fixed and flex accounts. If you opt for a fixed interest account, you will have to keep your deposits locked with Nexo for a period of one month or three months.
During the lock-in period, you won't be able to withdraw your deposit, whereas, in a flex account, there's no lock-in period. Hence, you are free to withdraw your Ethereum deposits anytime you want. You will also receive a daily payout if you opt for the Nexo flex account.
You can earn up to 5.35% interest on your Ethereum deposits on YouHodler. But unlike many of its peers, YouHodler requires users to deposit a minimum of $500 worth of Ethereum to become eligible to earn interest.
YouHodler offers weekly payouts to its interest account holders and offers 24x7 access to their deposits. They can also withdraw their Ethereum deposits for free from their YouHodler interest accounts as YouHodler charges no fees for withdrawals from its interest account holders.
Is it Risky Earning Interest on Ethereum?
There's no doubt that earning interest on Ethereum is one of the best ways to multiply your Ethereum holdings, but is it entirely risk-free? No, as there is an element of risk involved in earning interest on Ethereum.
Crypto lending platforms offer interest to their interest account holders from their income, which they earn from lending cryptocurrencies and fiat currencies. Though most of the crypto lending platforms have made over-collateralization mandatory to borrow from them, there are a few that don't require over-collateralization.
If you open an Ethereum interest account with the lending platforms that don't require over-collateralization, there is a risk that you may lose your deposits if their users start defaulting on their loans.
There's also a chance that the lending platforms offering interest accounts to their users may go bankrupt if their borrowers start defaulting their loans in large numbers. In case of bankruptcy, its users will lose their deposits, along with any interest income that they were supposedly going to earn from the lending platform.
Many interest account providers insure their user funds, but the insured amount is usually in millions. It means that if the losses are worth billions, the insurance won't be enough to cover the entire loss. Hence, even if a lending platform has insurance worth millions of dollars, there is a risk that it won't be enough to cover the entire loss.
To ensure that your Ethereum deposits are safe, choose an interest account provider that has been in the industry for some time. Don't fall for the claims of offering the highest interest rates right away, and research the platform properly to understand their credibility. You can also check our honest reviews on every major interest account provider available in the market today.
What to Look for When Choosing a Platform?
When choosing a platform to earn interest on Ethereum, you must check for a few things. The most important criteria that you should research is the interest rates offered, followed by the duration since when the platform has been in the business.
It's important to note that new platforms will offer the highest interest rates but the risk factor involved is higher as well. So, select a platform offering a higher interest rate but has been active for at least a few years.
Insurance is also a crucial factor that you must not neglect while choosing a platform. Platforms like Nexo, YouHodler, among others, have insured their user funds for millions of dollars. So, in case of a failure or a loss on the part of interest account providers, their insurance providers will at least cover a part of their user funds.
You must also check the criteria that each interest account provider has to earn the highest interest rate offered by them. Some platforms demand that their interest account holders hold some percentage of their investment portfolio in the platform's native token to earn the highest interest rate offered by them. Some platforms also mandate that their users must receive interest payout in the platform's native token to become eligible for the highest interest rates offered by them.
A few platforms also have mandatory minimum deposits to become eligible for earning interest on Ethereum. Hence, you must also check if an interest account provider has any minimum deposit requirements to become eligible for earning interest on Ethereum.
A few interest account providers have a compulsory lock-in period during which you won't be able to withdraw your Ethereum deposit. If you think that you will need your deposit back within the stipulated lock-in period, opt for the platform with no mandatory lock-in period to earn interest on Ethereum.
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