At Xapo Bank, transparency isn’t just a buzzword—it’s a cornerstone of our relationship with you. You deserve to understand the journey of your USD Savings and how it generates earnings. Let’s take a look at how Xapo Bank generates this interest and what it means for you.
Your money remains yours - we don't lend it out
Most traditional banks lend your money out – a practice known as fractional reserve banking. This means a bank only holds a fraction of the money deposited with them as reserves.
As your money isn’t lent out or tied up in long-term investments by Xapo Bank, you can enjoy instant access to all of it whenever you want, free from any penalties.
Strategic investments for growth and agility
At the heart of our approach is the precise and careful placement of your USD savings, with our focus on putting them into highly liquid, short-term AAA-rated U.S. Treasuries. This isn’t just about investing smartly, it’s about making sure your money is always ready and available for you, giving you the best of both worlds: growth and peace of mind.
What are AAA-rated U.S. Treasuries?
U.S. Treasuries are debt securities issued by the United States Department of the Treasury. They are widely regarded as one of the safest investments globally, backed by the full faith and credit of the U.S. government. The AAA rating reflects the highest level of creditworthiness and is a seal of approval given by credit rating experts.
Why choose low-maturity Treasuries?
We specifically choose Treasuries that are set to mature soon because they help protect your investment from the ups and downs of interest rates, keeping your assets flexible. This means your funds are ready to be converted into cash quickly, whenever you need it. It's all about keeping your savings safe and readily accessible.
How we share interest with you
While market conditions can influence returns, our dedication to your growth doesn’t change. We make it our mission to ensure the bulk of gains are passed on to you, securing and expanding your wealth alongside us. The amount we retain isn't just for us—it's for continuously upgrading and refining the services we offer you.
The USD savings account you can access anytime
The USD Savings account is designed to give you freedom and flexibility with your finances. Whether you need your whole balance for an unexpected expense or to dip into it for a planned purchase, it can be accessed at any time with no hidden fees.
Keeping You informed
Interest rates change, and we believe you should be the first to know. We keep you in the know about new changes as and when they happen throughout the year, ensuring you’re always informed about how they affect your savings.
In summary
True transparency in finance is about nurturing trust. By responsibly investing your savings in secure, liquid assets such as AAA-rated U.S. Treasuries and sharing the returns with you, we ensure that your savings not only grow but are also available whenever you need them.
Disclaimer
This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.
*Capital at risk. This information is not investment advice. Crypto asset values can go up as well as down and you could lose all the money you invest. This is a high‑risk investment and you are not protected if it loses all or some of its value. Past performance is not indicative of future results.
