For many, the strategy for bitcoin has been simple: buy and hold. But what if your bitcoin and even your US Dollars could actively work for you, growing your holdings every single day? This is the powerful premise behind a yield-bearing account, a feature that turns your savings into a source of passive bitcoin earnings.
However, not all yield accounts are created equal. It's crucial to understand how they work and what to look for in a provider. This guide will explain the fundamentals and show you how we at Xapo Bank have created a secure,* member-first approach to help you grow your wealth.
How do you earn yield on your assets?
Traditionally, many platforms that offer a yield on crypto do so by lending out their clients' assets to borrowers. While this can generate high returns, it also introduces significant risks. If the borrower defaults, the client's funds can be at risk.
At Xapo Bank* , we do things differently. It's a model built on security* and trust.
We believe that your money should not be exposed to unnecessary lending risks. That’s why we do not lend or leverage your deposits. Instead, we use our own capital to generate the yield we pay to you. We invest our funds in safe, short-term US Treasury Bills and other high-quality liquid assets. The returns from these investments are what allow us to pay you daily annual yield.
This means you get the best of both worlds: the opportunity to grow your wealth with an attractive annual yield rate, and the peace of mind that comes from knowing your funds are not being lent out.
From US Dollars to bitcoin: A seamless way to grow
One of the most innovative ways to build your bitcoin position is by earning on your US Dollars. With a Xapo Bank account, you can deposit USD and earn up to 0.0% annual interest*, with all your earnings paid out daily in bitcoin. This allows you to steadily increase your satoshi stack without being directly exposed to market volatility on your principal dollar savings.
Of course, you can also earn yield directly on your bitcoin. We offer a competitive 0.0% annual interest rate on all BTC deposits up to a balance of 5 BTC, paid out daily.
Key factors to consider when choosing an yield account
When you're ready to start earning, here are the critical factors to evaluate:
1. Security and regulation: This is non-negotiable. Your assets should be held by a trusted and regulated institution. Xapo Bank is a fully licensed and regulated bank and operates together with a fully licensed and regulated virtual asset services provider (VASP), meaning we adhere to strict regulatory standards that protect our members. We provide a level of security* and oversight that is distinct in the crypto space.
2. How yield is generated: As explained, this is a key differentiator. Ask if the platform lends out your assets. A model like Xapo Bank's, which generates yield from its own capital, offers a fundamentally safer proposition.
3. Access to your funds: Your money should be available when you need it. Some platforms have complicated lock-up periods or withdrawal limits. At Xapo Bank, we believe in flexibility. Your money. Your rules. You have instant access to your funds with no lock-ups or waiting periods.
4. Transparency and Rates: Look for a provider that is clear about its interest rates and how they are applied. Our rates are competitive, and we ensure all yield payouts are clearly visible, landing in your account every single day.
Beyond interest: turn every action into more bitcoin*
Growing your wealth shouldn't stop with savings. With Xapo Bank, every financial action can lead to more bitcoin. Our members also benefit from:
Bitcoin Cashback*: Earn up to 1.0% cashback in BTC every time you use your Xapo Bank card.
Referral Rewards: Get rewarded in bitcoin for bringing new members into the Xapo Bank community.
Choosing to open a bitcoin yield account is a significant step in your financial journey. By understanding how they work and prioritising security, you can turn your assets into a powerful engine for growth. At Xapo Bank, we've built a better, safer way to do just that.
*Crypto asset services are provided by Xapo Vasp Limited, a company regulated by the Gibraltar Financial Services Commission as a ‘Distributed Ledger Technology Provider’ under Permission No. 26061 and not by Xapo Bank Limited. Xapo Bank Limited provides services exclusively in respect of fiat balances. Crypto asset deposits are not covered by the Gibraltar Deposit Guarantee Scheme.
*For more information on the security features available at Xapo Bank Limited and Xapo Vasp Limited, please visit:
Banking your BTC*: A Secure Way to Buy and Store Bitcoin | Xapo Bank
*The Annual Interest Rate offered on both USD and Bitcoin deposits is variable and may change at any time. Please see our Interest FAQs for more information.
*Interest on both USD and BTC is currently paid in Satoshis. We may instead choose to pay it in any other supported currency or currencies (fiat and/or crypto) from time to time.
*Please note that some merchant categories are excluded from earning cashback. Please see our Xapo Bank card FAQs for more information.
*All referral rewards are paid in satoshis. Subject to meeting eligibility criteria and referral terms.
*Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
*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. Bitcoin deposits are not covered by the Gibraltar Deposit Guarantee Scheme.
