Wealth & Yield

Earning interest with Xapo Bank is designed to be simple and sustainable. Simply allocate your funds to your dedicated USD and BTC Savings accounts in the app, or utilise one of our range of savings products that pay interest in Bitcoin. Your balances will begin accruing interest at our competitive Annual Percentage Yield (APY), allowing your wealth to grow seamlessly without the need for active management.

USD Savings We prioritise the safety of your wealth above all else. Unlike many platforms, we never engage in high-risk lending or speculative trading to generate returns. Instead, we generate yield through conservative, institutional-grade financial strategies. This primarily involves investing in High Quality Liquid Assets (HQLA), such as short term US Treasuries and Corporate Bonds. This disciplined, traditional banking approach ensures consistent returns whilst rigorously protecting your principal.

Bitcoin Savings The Bitcoin held in your regular Xapo Bank Savings account is never deployed, lent out, or used for speculative trading. It remains completely secure and strictly reserved on a 1:1 basis. The yield you earn on these savings is currently subsidised directly by Xapo Bank. We choose to pay this interest out of our own capital as a way to reward our members for choosing Xapo Bank as the secure home for their Bitcoin wealth.

For members who choose to allocate their Bitcoin to our higher-earning wealth strategies, these generate returns through a strictly managed institutional lending model. Yield is generated by lending Bitcoin to a carefully diversified and rigorously vetted portfolio of established, well-capitalised tier-1 institutional counterparties. These advanced Bitcoin strategies earn revenue via interest payments from these counterparties.

While the primary risk associated with this strategy is credit risk, the conservative approach is governed by strict risk-management protocols. By employing thorough due diligence and continuously updating counterparties’ credit information, these grant you peace of mind to earn a steady, reliable return on your digital wealth while exposing your assets only to highly credible institutional borrowers.

Interest on both your fiat and Bitcoin savings is calculated and paid out on a daily basis, in Bitcoin. Each day, your earnings are automatically deposited directly into your Bitcoin savings balance. Because these daily payouts are immediately added to your principal, your interest compounds daily, allowing your wealth to grow continuously with absolutely no manual intervention required. Within certain advanced Bitcoin strategies, you may be able to choose to receive your interest monthly as a payout or have it go back into the principal to compound.

There are no lock-up periods or minimum term requirements for Xapo Bank’s savings accounts. Your funds remain entirely liquid, meaning you can transfer your assets in and out of your savings accounts at any time without facing early withdrawal penalties or sacrificing the interest you have already accrued. However, access to some features within our suite of savings products may require additional lock-up periods of 30 days or more.