Looking for a way to earn interest on your stagnant savings? Well here's an option I found which is an alternative to your typical savings account, but also provides an even higher rate of return than what you would receive even from some of the non-traditional online/app only savings accounts I've mentioned in the past. One of these options is with BlockFi. Now BlockFi is a Fintech company which focuses specifically on Digital Currencies, also known as Cryptocurrency. By holding your eligible Cryptocurrencies in a BlockFi Interest Account, or BIA for short, you can earn rates as high as 7.5%!
(updated as of July 2021)
Earn High Interest
Earn interest as high as 7.5% on stablecoins and other cryptocurrencies. You can also receive your interest payments in the form of a specific cryptocurrency if you choose! By default you will receive your interest payments in the same form as the cryptocurrency you hold within BlockFi, however if you would like you can have all of your interest earnings paid in a specific coin of your choosing like Bitcoin. Your interest yield will be based on the coin type you hold in your account, not based on what coin you choose to be paid in. So for instance you can hold GUSD and receive the 7.5% rate while receiving your payment in BTC. This is a great way to grow or start your Bitcoin holdings without actually buying into Bitcoin directly if you don't want to. Essentially turning your savings into an automated monthly purchase of Bitcoin with money you may already have sitting in a savings account elsewhere. For some people this would be a way to limit their risk, while also adding a little exposure to the world of cryptocurrencies.
With interest rates as low as they are currently for traditional banks due to the low fed rates, this is a great way to earn interest on cash which is sitting and doing essentially nothing in your savings currently, or even worse losing value due to inflation. Typical inflation on cash is about 2-3 percent per year, but some experts expect this to be higher due to the increase in the money supply over the course of 2020 and into 2021.
Unlike Bitcoin and Ethereum, whose value fluctuates more like a volatile stock, Stablecoins attempt to mimic the same value as the US Dollar. Thus you don't have a change in it's value on a day to day or even hour to hour basis that you would have with your typical cryptocurrency. So you get a savings like vehicle, but with a much higher interest rate than traditional or even newer online only banks.
Trade and Borrow
With BlockFi you can do much more than just earn interest on your savings. BlockFi has a bunch of other financial options just like a traditional bank or brokerage account. You can trade, buy and sell cryptocurrencies, and you can borrow against your cryptocurrency holdings with rates as low as 4.5%
What do you think about BlockFi? Let us know if you already own any particular cryptocurrency, and if so are you currently earning interest on your holdings? If you've never purchased a digital currency before, would you be interested now after reading this review? Let us know down in the comments below!
AJ Mobile Money
Husband | Father | YouTuber | Former ATLien
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