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Why Crypto Savings Accounts Are Gaining In Popularity

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Crypto savings accounts are the new black and it’s something to consider if you’re looking for options to grow your wealth. Unlike traditional savings accounts that offer a national average APY of 0.06%, crypto savings accounts advertise rates as high as 14.5% APY. So, what’s the difference and are they a safe option?

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Even Finder has gotten into the game with its Finder Earn product in Australia. It launched in Australia earlier this year and will be live in the US soon – watch this space!

The Benefits

Obviously, the most important benefit for any savings account is your return and, as stated above, traditional savings accounts have no shot at competing with crypto savings accounts in terms of APY.

If you were to drop $2,500 into a traditional savings account and let it sit there earning 0.06% APY, you’d wind up with an additional $15 after 10 years – enjoy that movie ticket and a small popcorn.

Now, if you were to take that same $2,500 and throw it into a crypto savings account at the national average APY of 8.4%, over that same decade you’d wind up with over $5,500, which equates to an additional $3,000. To put that in perspective, if you were wanting to see that same type of growth with the traditional savings account it’d take over 1,000 years.

Money Isn’t Everything

OK, so clearly the key benefit for crypto savings is the return you can earn. But, a lot of people don’t know that these crypto savings accounts have practical uses too. Many of these products can be linked to debit cards, which allows you to use them to make everyday purchases. You can even use these accounts to pay your bills. So in many ways, these accounts function in the same way as your traditional checking account, plus you’re getting a higher return in most cases.


Much like some credit cards offer rewards as a way to earn customer loyalty, some crypto savings accounts such as Celsius and Nexo offer loyalty rewards including free withdrawals and bonus rewards.

Possible Downsides

While the returns are high there are some very real potential risks to be aware of before you open an account.

Crypto Savings Are Not FDIC Insured

This is probably the biggest concern for potential crypto savings account holders. What this means is that if someone hacks your account or the institution goes under, it’s unlikely that you’ll ever see those funds again. Although it’s similar to other investment assets such as stocks, which are also not FDIC insured.

Handing Over Your Private Keys

When you deposit your crypto into a crypto savings account you may be asked to hand over your asset’s private key(s), which does theoretically present some trust issues. You can think of your keys like a private password - you wouldn’t give out your PIN for your ATM card to just anyone, so be careful.

Limits On Withdrawals

Taking your money out of a crypto savings account has a few more hurdles than a traditional savings account. While traditional savings accounts normally limit the number of fee-free monthly withdrawals to 6, crypto savings accounts are generally more restricted. Platforms differ with the number of withdrawals they permit. So make sure you check the fine print.

Are Crypto Savings Accounts The Future?

I believe that cryptocurrency will change the world’s banking systems and crypto savings accounts are yet another solid use case that proves its longevity. But it’s not just me. Back in October 2021, we spoke with 50 industry specialists on what the future holds for crypto savings accounts and the vast majority think that they’re here to stay.

When asked if they believed that crypto savings accounts would become the default for savings, a third (33%) said that crypto accounts would be the default over traditional savings accounts. In addition, 47% said that while they don’t see crypto savings accounts being the default form for savings accounts they do believe that crypto savings will become mainstream.

And this idea of crypto savings accounts being mainstream may be a reality sooner than you’d think. Of those that said crypto savings accounts will overtake traditional savings accounts as the default, three-quarters (75%) believe this will happen by 2030 and about one-third of those experts predict it will be the norm by 2025.

OK, throw out whether or not this is the future for savings, over half (51%) think depositing crypto assets into crypto savings accounts for the benefit of high returns is worth the risk.

The Bottom Line

The way things are trending right now, it looks like cryptocurrency is here to stay and crypto savings accounts are too. Whether or not crypto savings accounts will become the norm is up in the air but what’s not is their ability to far outpace traditional savings accounts in terms of APY. Yes, this does come with risks like the fact your funds aren’t FDIC insured but it’s up to you to decide whether the risks outway the possible rewards.

About the author

Fred Schebesta is an Australian-born entrepreneur and early stage investor, founder of global fintech Finder, now worth over half a billion dollars. Fred recently launched blockchain investment fund Hive Empire Capital, and co-founded Balthazar, a DAO platform for NFT gaming. With 22 years experience in building businesses, Fred released a Number 1 Amazon Best Selling book, "Go Live! 10 Principles to Launch a Global Empire".