The rise of Decentralized Finance (DeFi) has shown how popular it can be to earn interest in popular cryptocurrencies such as Ethereum. With Ethereum prices trading mostly sideways since the beginning of the year, earning interest on Ethereum through borrowing and lending platforms can provide a passive income stream. This guide will review our picks for the best Ethereum interest accounts and provide a step-by-step tutorial on how to earn interest on ETH.
Based on our research, these are the best places to earn interest on Ethereum:
Different crypto lending and savings platforms have varying rates of interest and distinctive features that can influence which are the best places for earning interest. The table below provides a summary of the best interest rates for Ethereum among the top providers at the time of writing.
|Platform||ETH Interest Rate||Requirements||Best For|
|Nexo||Up to 8% APY||Must stake NEXO for higher interest rates||Highest Ethereum yields|
|BlockFi||3% APY on first 1.5 ETH, then reduces to 0.25%||None||Great for investing small amounts|
|Binance||0.1% ~ 2.4% APY||None||Flexible interest account|
|Celsius||6% APY for the first 2 ETH, 4% for 2 - 25ETH and then 3.52% APY||None||Good alternative to Nexo|
|Crypto.com||Up to 6% APY||Must stake CRO to acquire higher interest rates||Earn interest with simple app|
To begin earning interest on Ethereum, follow these simple steps.
- Compare and select an ETH interest platform
- Create an account and complete verification
- Deposit or purchase Ethereum
- Begin earning interest on Ether
Once an investor has decided to use the Ethereum they hold to generate passive income, they have to find a cryptocurrency exchange or lending provider that offers the most benefit. Narrowing down a platform is not an easy task as are multiple factors to consider. The most important aspects are the Annual Percentage Yields (APY) and minimum lock-in periods. That is, how long the individual must keep their Ethereum locked in to make maximum gains.
Moreover, the security of the interest platform is paramount. Keeping these points in mind, here is the list of best platforms to earn interest on Ethereum based on our comparisons.
1. Nexo - Overall Best Platform To Earn ETH Interest
Nexo is a crypto trading platform that offers users lending and interest-generating opportunities. Launched in 2018, Nexo has been one of the most trusted and secure borrowing and crypto lending websites for investors. Individuals can fund an Ethereum interest-earning account with crypto or cash such as USD, GBP, AUD, EUR or 36 other currencies. Currently, the platform has over $12 billion in assets under management and serves more than $4 million users worldwide.
Since its launch, Nexo has made many design changes to make the experience easier and more intuitive for the user. Thus, everything from account creation to lending, borrowing, staking and storing is a straightforward procedure. The platform also has a secure crypto wallet that investors can use to exchange and transfer their crypto assets.
Ethereum investors don't have to go through more than a couple of steps to start earning interest on Ethereum. They only need to add Ethereum to their account, making them eligible to earn interest for their Ethereum holdings. Users can earn up to 8% interest APY on Ethereum, the same interest rate offered for Bitcoin interest accounts. This is one of the highest Ethereum interest rates compared to other platforms. Moreover, the ETH interest is paid out daily for compounding and there are no hidden fees or commissions.
That said, to earn the 8% APY rate, users must be part of Nexo's Platinum Tier. It means that 10% of investors' total holdings on the Nexo platform should be NEXO tokens – the governance token of the platform. The base interest rate for ETH is 6% APY. While this will not appeal to everyone, the plus side is that investor ETH holdings are insured. That is, NEXO has a $375 million insurance policy on custodial assets by BitGo.
A value add provided for Ethereum investors is the Nexo card. It is a crypto spending card that allows users to deposit collateral on the card and take out a line of credit. When a user spends on the card, they are borrowing more from their Nexo credit line. Repayment is made directly to the Nexo credit line, and not to the card itself. The benefit is a 2% cash back upon paying the vendors using this card. For instance, cardholders can spend Ethereum at thousands of VISA merchants worldwide.
It should be noted the Ethereum interest platform with Nexo is not available for US investors due to strict regulations. For users in supported regions, Nexo is our top option for earning interest on Ethereum.
- Simple and intuitive platform that is suited for beginners
- ETH covered under a $375 million insurance policy for custodial assets
- Compounding daily interest payouts for Ethereum deposits
- High interest rates compared to its competitors
- Provides support for business accounts
- No hidden fees of credit score check
2. BlockFi - Good Interest Rate With Minimum ETH
BlockFi is an excellent platform for smaller investors to earn interest on their minimum Ethereum holdings. Borrowers looking for loans in US dollars can use this platform by putting their cryptocurrencies as securities. BlockFi was founded in 2017 and had the support of major investors who have stakes in the cryptocurrency space.
As one of the most secured crypto lending platforms, BlockFi comes under the regulation of The New York Department of Financial Services. In addition, BlockFi is a well-established crypto provider with over $10 Billion+ in assets and 1 million clients worldwide. It can be said that BlockFi is one of the most secure and best platforms to earn interest on Ethereum at the time of writing.
As for the interest rates, BlockFi users can earn up to 3% APY on Ethereum by depositing as little as 1.5 ETH. The interest rate is based on a tiered structure with the rate reducing for larger amounts invested. The APY reduces in Tier 2 to 1.5% for amounts between 1.5 ETH to 5 ETH. If investors deposit greater than 5 ETH in the Blockfi Interest Account, they will earn an APY of 0.25%.
|Tier 1||0 - 1.5 ETH||3.00%|
|Tier 2||>1.5 - 5 ETH||1.50%|
|Tier 3||> 5 ETH||0.25%|
The interest within the Ethereum savings account is accrued daily and transferred to the investor's account monthly. Investors can also choose among the cryptocurrencies when choosing how they wish to be paid interest. That is, a person that deposits ETH into a savings account can opt to be paid interest in another crypto. However, the supported coins for Interest Payment Flex option that enables choosing the currency is limited.
When comparing BlockFi and Nexo, the rates on BlockFi are much lower. However, given its top-shelf security and regulatory compliance, BlockFi is a reputable choice for earning ETH interest. As a beginner, the appeal for BlockFi is the no thresholds on maximum or minimum deposit amounts, is highly trusted, reputable and easy to use.
- Highly respectable and trusted crypto interest platform
- More than 700 million has been invested
- Features an exchange to buy, swap and sell crypto
- No minimum requirements for savings account
3. Binance (provides multiple ways to earn Ethereum interest)
Binance is one of the world's best cryptocurrency exchanges in terms of trading activity and the number of users. But since its inception, it has developed and ventured into various territories. They range from NFT marketplaces to providing a chain develop dApps to Binance Earn, a utility that allows users to earn interest on Ethereum and other listed cryptocurrencies. Not to mention, Binance has the largest trading volume among all the exchanges and supports more than 600 cryptocurrencies.
When it comes to earning interest on Ethereum, Binance provides the most diverse choices among all the platforms listed in this guide. Investors have several ways to earn interest on their Ethereum holdings in a Binance wallet.
Flexible Savings offers users the ability to earn up to 2.4% APY interest on Ethereum. As the name states, the duration is flexible, and the APY ranges across tiers. Tier 1 has a return of 2.4% for 0 to 0.2 ETH, which is then reduced to 0.1% APY for amounts above 0.2ETH. The offered rates are very comparable to BlockFi. Although, the benefit of Binance is access to other ways to earn crypto such as staking and DeFi pools.
For instance, there is the option to stake Ethereum 2.0 and earn rewards up to 5.2%. However, the stake cannot be redeemed during the first phase because Ethereum 2.0 upgrade is yet to arrive (its estimated launch date is not until at least 2023). More so, users can diversify their ETH holding to a DeFi staking pool which offers the most interest on Ethereum. At the time of writing, the pay out is 10.12% APY but the tokens must be locked for a duration of 120 days.
For those looking for the best interest rate on Ethereum, Binance has its Dual Investment product for investors who trust their prediction on the price of Ethereum. Binance offers a high-yield Savings service where by investors can lock their Ethereum to earn extremely high-interest rates. Users can earn returns up to triple digits if the value of Ethereum reaches a certain price. At the time of writing, if the Ethereum Price reaches the target of $1800, the interest-earned would be 201.24% after selling the principal amount. However, it is a high-risk interest-bearing product that can result in losses exceeding the initial ETH deposit.
- Provides multiple options to earn interest on Ethereum
- Gives up to 2.4% interest for Ethereum for flexible holding duration
- Offers a high 10.12% interest for holding Ethereum for 120 days
- Highly secure platform
4. Celsius (best ETH interest rates)
Celsius was founded in 2017 and hosts an array of financial services in the crypto space. The services include crypto savings accounts with good interest returns and zero transaction fees. The platform was conceived as a vision of the founders who wanted the traditional nuances (good parts) of the traditional finance in the cryptocurrency ecosystem.
Celsius's main focus is on crypto borrowing, lending, and earning. It also has an app that allows investors to buy 10 cryptocurrencies and swap them for 30 other cryptos. The platform has been specifically designed for newcomers who want to earn interest with Ethereum and other cryptocurrencies to generate a respectable amount of passive income.
Interest rates vary depending upon how much Ethereum the investors want to store. The APY is 6% for the first 2 ETH deposited. The interest rate on Ethereum for investors with 2 to 25 ETH is 4.00% APY. The interest amount is reduced to 3.52% APY for users with more than 25 ETH on the platform. Compared to staking Ethereum, the rates offered on Celsius are very good.
Celsius also offers CEL, which is the native token of the platform. The tokens can be purchased or distributed to investors as loyalty rewards. It is not yet available to unaccredited US-based investors. Holding this token allows users to get several perks and discounts such as higher interest rates. For instance, those with CEL tokens can earn up to 7.87%, 6.23%, and 4.60% of interest on Ethereum, respectively. Compared to its competitors in the market, the ETH interest account is one of the best after Nexo.
- A beginner-friendly platform
- Higher APY for CEL holders
- No minimum balance required
- High APYs for normal investors as well
5. Crypto.com (offers multiple ways to earn ETH)
Crypto.com has grown into one of the leading crypto apps in the world. With more than 50 million users worldwide – largely due to its savvy marketing campaigns such as onboarding Matt Damon as the ambassador to sponsoring the FIFA world cup 2022. Marketing strategies aside, it is a good crypto platform for newcomers who're trying to find their way trying to navigate the complexities of the crypto space. Crypto.com has its own DeFi Wallet, an NFT marketplace, crypto exchange and a VISA debit card that allows users to use cryptocurrency to pay retailers. With all these features packed into one platform, Crypto.com is undoubtedly one of the best apps in crypto for beginners and experienced investors.
One of the standout features of this platform is the Crypto Earn which enables its customers to grow a crypto portfolio through interest accounts or staking up to 14.5% APY. It offers investors opportunities to earn interest in Ethereum and other cryptocurrencies. Crypto.com offers a 5.20% APY interest rate on Ethereum. However, in order to attain this interest rate, investors must stake at least $40,000 worth of CRO and lock their Ethereum for three months.
To earn the 6% interest on Ethereum, users must hold at least $100 worth of Ethereum for three months and stake $40,000 worth of CRO. The conditions to be eligible for the highest Ethereum interest rate will be out of reach for many investors and potentially offset any gains if the token value of CRO declines.
The minimum interest rate anyone can earn on the platform by locking their Ethereum is 0.25%. The rewards are paid on a weekly basis, which is more frequent compared to BlockFi but less than Nexo which is daily. The interest is paid out in the same currency depositing. Therefore, Ethereum interest accounts will accrue Ether which is distributed to the user's Ethereum wallet.
Compared to our recommended places to earn Ethereum in this article, the Crypto.com App is by far the easiest and most convenient way to earn interest on Ether with competitive rates for CRO holders.
- Supports more than 250 cryptocurrencies
- Offers up to 6% interest on Ethereum
- Provides an easy-to-use mobile app
Here is a comparison table of the top places to earn interest on ETH using trusted and reliable platforms. For more information, read our dedicated reviews on each provider.
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|$25 Bitcoin for >$100 deposit||Visit Nexo||Nexo Review|
|Get up to $250 Bonus in Bitcoin||Visit BlockFi||BlockFi Review|
|20% off trading fees||Visit Binance Earn||Binance Earn Review|
|250+||None (3.5% surcharge for credit card)|
|None available at this time||Visit Crypto.com||Crypto.com Review|
|None available at this time||Visit Celsius||Celsius Review|
Newcomers who are not fully committed to trading the volatile crypto market will find earning interest in Ethereum to be a better alternative. It is a passive way to generate additional income and provides a fixed or flexible rate depending on the provider. Moreover, storing Ethereum and earning interest is a better yield option compared to most banks, which at most offer 1% interest.
With interest rates on Ethereum ranging between 2.40% and 8%, depositing a portion of ETH holdings to a savings account could be a profitable long-term strategy. This does depend on the price valuation of Ether not depreciating more than the interest rate over 12 month period.
Earning interest on Ethereum might not be that flashy as compared to the gains to be made interacting with the volatile market directly, but it has several benefits. Following is the list of advantages that makes earning interest on Ethereum worth it:
- Reduced Risks: Locking Ethereum inside a vault and earning regular interest is akin to storing the cash in the bank. In Ethereum's case, however, the returns are compounded daily, and the payouts can happen monthly and weekly. Those who're not ready to interact with the crypto market full time must take advantage of this less-risk and massive option.
- Attractive Interest Rates: Crypto trading platforms provide attractive interest rates up to 8% APY, especially when the stored tokens are few in number. It is an interesting way to earn Ethereum for those who are economical about their investments.
- Low Fees: Withdrawal and deposit fees for the listed platforms are either cheap or non-existent. Withdrawing and depositing are easier and can be easily done via a wallet.
Trading and earning interest are two different ways to make money from Ethereum. The latter is a slower option and consists of regular payouts at regular intervals. The former option – trading – is for those who're willing to deal with the volatility of the crypto market.
That being said, veteran investors also find holding Ethereum to be far more valuable than trading them right away. When it comes to Ethereum Price Predictions, experts have said that it can go as high as $13k by the end of 2022.
Since cryptocurrency platforms' policy often changes with the market trends, the compounding interest rate may also increase. It is one aspect that would benefit both the traders and holders of Ethereum.
1. Compare and select an Ethereum interest account
The first step to earning compound interest on Ethereum is to compare and choose a crypto interest platform to use. For the purpose of this tutorial, we will use Nexo which is our top-rated savings account for ETH based on our comparisons.
2. Create an account and complete verification
Visit the Nexo website and create an account. This is a simple step and can be done by filling out a few columns with details such as name, email ID, and creating a password. Once the details are verified by email, the signup process is completed. There is a mandatory ID verification process called Know-Your-Customer (KYC) before using the earn features on Nexo. To complete this process, basic personal information and a Government-issued ID will need to be provided.
3. Deposit or purchase Ethereum
After the user has provided the verification details and Nexo has approved them, the interest account is verified. Investors can now either buy Ethereum on the platform using the fiat method or copy their ETH address to transfer funds to their Nexo account. The fees to purchase ETH directly on Nexo are a little high. For a list of the cheapest places to buy Ethereum, read this article.
4. Begin earning interest on Ethereum
Once the ETH is on the Nexo account, it will start accruing interest. There is no trading to be done, and any further interactions are required. All the user now must do is wait and let their Nexo account generate passive income for them. The amount of interest earned can be monitored directly on the Nexo platform or mobile app.
While there are many crypto interest platforms that offer a way for investors to earn interest on Ethereum, the best places are Nexo, Binance, BlockFi, Crypto.com and Celsius. These providers are reputable, offer competitive interest rates and have high-security standards in place. Investors must first understand the offerings that these platforms provide before making a decision.
Nexo pays the highest interest on Ethereum at the time of writing. While the standard interest rate is 6% APY, holders of Nexo's native token, NEXO, can increase the interest by 2% to 8% per annum.
Yes, holding Ethereum can pay interest between 2.4% and 6% per annum with select crypto platforms. One of the highest interest rates for ETH is 8% per year with Nexo. The interest accrued is paid out daily and compounded with the initial deposit.
Yes, the interest generated by holding Ethereum in an interest-earning account will be considered income by most Government authorities and therefore trigger a capital gains event. This means that the interest earned (not the principal) may be subject to Capital Gains Tax (CGT).
To sum up, this article covers the best platform to earn interest on Ethereum. It is recommended that users first assess their expertise and risk-taking proclivities before investing. Even though earning interest on Ethereum is a safer option to earn passive income, it is not without its risks.
The volatility of the crypto market makes it necessary for investors to take each step after carefully weighing all the pros and cons. Another factor to be mindful of is the crypto interest platforms. Not every trading portal is designed the same and provides different interest rates. It would be wise for the investors to assess each platform carefully before choosing.
Kevin started in the cryptocurrency space in 2016 and began investing in Bitcoin before exclusively trading digital currencies on various brokers, exchanges and trading platforms. In 2019, he started HedgewithCrypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world.