The growing demand from consumers has led to the rise of a variety of alternative saving accounts that cater to every kind of client. An article by The Balance listed some of the different types of savings accounts which include basic savings accounts, online savings accounts, money market accounts, certificates of deposit, interest checking and specialty accounts.
The providers of these savings accounts have also introduced mobile apps to help customers manage their finances, with many of them incorporating the ability to track spending and glean insights into their financial habits. A blog post by Petal explains the importance of these features – spending charts help make users more aware of their spending patterns; revealing what months were the most expensive, the merchants they spent the most on, and what items are taking up most of their budget are seen as essential steps for building better spending habits. Financial institutions seem to be paying greater attention to helping their customers become better savers and become more financially aware individuals, but for the most part, these efforts have been limited to managing fiat money.
Fortunately, the rapid progression crypto has experienced in recent years has seen several startups offering crypto savings accounts around the world, to be accessed in increasingly convenient ways. One Asian startup even lets customers buy and sell Bitcoin at 7-Eleven stores, making this currency more available for the unbanked demographic. Crypto savings accounts like these are revolutionary pieces of fintech that allow people to protect their finances from threats of inflation and economic instability. To learn more about these kinds of savings accounts, here are some of the startups that have started offering crypto saving accounts in America:
Blockfi is one of the leading digital asset management service providers that allows investors to earn 0.5% to 8.6% annual percentage yield (APY) on their crypto asset holdings. In his article on Medium, Joe Pile explains that the good thing about having a Blockfi savings account is the zero-fee trading feature that allows users to seamlessly trade between different types of cryptocurrency on the platform. Another feature that makes Blockfi really appealing is the compound interest feature that enables the interest you earn to earn interest the next month, helping you build wealth exponentially over time. Of course, if there are perks, there are also drawbacks, including the high withdrawal fees and the long withdrawal time which can take up to 24 hours to be processed.
Celcius Network allows you to grow passive income by issuing asset-backed loans and lending coins to hedge funds, exchanges and institutional traders. People who are interested in opening a Celsius savings account are free to deposit as little or as much as they want, depending on how confident they are with the platform. Withdrawals are also free and you’ll always have 100% access to your funds due to there being no lock-up protocol. Interest payments are also done on a weekly basis. However, unlike Blockfi, Celsius only offers simple interest and has a $20,000 limit on immediate withdrawals. The platform also requires account holders to pass KYC before they can earn interest and does not have a downloadable earnings statement.
Last year, BitLeague announced the public launch of Bitcoin Term Deposit, which permits global Bitcoin holders to enjoy up to a 9% annual return on their Bitcoin savings if they apply on their website and download their app. Benzinga’s article on BitLeague explained that aside from high-interest rates, this crypto savings account offers many choices on terms, as well as a zero trading commission service to those who buy and/or sell Bitcoin. Unfortunately, all services by BitLeague are Bitcoin-focused, but there are plans regarding the launch of a Libra interest account which will offer an expected rate of 6%.