Today's savings account rates are basically 0% in the traditional finance market.  In contrast to that, we are seeing both centralized and decentralized marketplaces evolve to allow crypto to be borrowed and lent out at real market rates.

One provider in general has popped up a few times on my radar: BlockFi.  Most recently, there are rumors that they may be planning to go public.

One of my co-workers mentioned they had used it to create a bitcoin denominated savings account, that paid out interest in bitcoin.  The rates were stunningly high, so this seems like a good candidate to put some money into to see how it works.

Interest Rates at the Time of Account Setup

Compare that with current fiat bank accounts.

Bank Account Savings Rates for USD

First, when you sign up, make sure you get a referral link.  They are pulling the VC growth move and giving out really good incentives to sign up.  My co-worker sent me a referral code and I was able to get a $20 incentive to sign up (as long as I deposit more than $500 into the account).  My co-worker gets $50 for referring me.  $20 right off the bat is a 4% return on $500.

Here is my referral code if you need one: https://blockfi.com/?ref=665aefb5

Once you I started the registration process, here are the steps I had to perform to get through the AML/KYC process.

  • Email verification
  • Phone number verification
  • Name
  • Address
  • Social Security #

One interesting thing on the process was that it did not require a Photo ID upload (which is nice for a change).

After your account is verified, you are able to get to the dashboard.  The main thing to do now is deposit your crypto.

I am depositing Bitcoin.  They give you the address and the QR code to send.  Always double check...  Also if you are doing a large deposit.  Send a test transaction first to make sure everything is good to go.

One final thing is to add 2FA protection on your account.  Always do this.

And that is it.  Now we will track how much it actually pays out.

Accruing interest after about a week.

Investment By the Numbers...

Deposited 8/1/2020

USD Amount in BTC: $4,990