BlockFi Interest Account review

Earn up to 7.25% APY on USDT, but it's no longer available to new US customers.

finder.com’s rating: 3.2 / 5.0

★★★★★

BlockFi offers up to 7.25% APY on USDT and 7.00% on other stablecoins, and there are no minimum balance requirements. But it’s no longer available to new US customers due to a $100 million settlement for BlockFi‘s failure to register the account with the US Securities and Exchange Commission (SEC). If you’re in the US and want to start earning interest on your crypto now, compare other crypto savings accounts.

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Details

Intro or bonus offerUp to $250 in crypto after initial deposit
Deposit MethodsCryptocurrencies
Supported cryptocurrencies19

Disclaimer: This page is not financial advice or an endorsement of digital assets, providers or services. Digital assets are volatile and risky, and past performance is no guarantee of future results. Potential regulations or policies can affect their availability and services provided. Talk with a financial professional before making a decision. Finder or the author may own cryptocurrency discussed on this page.

How does the BlockFi Interest Account work?

The BlockFi Interest Account works like a traditional savings account, but it accepts cryptocurrency instead of US dollars and it’s not FDIC insured.

The account is currently not available to new US customers due to a $100 million penalty they received for not registering the offers and sales of this account to the US SEC. US customers are currently limited to opening a BlockFi wallet, credit card or taking out a loan with BlockFi. Existing BlockFi Interest Account customers will continue to earn interest on their crypto, but they can’t make any additional deposits into the account. As part of the SEC settlement, BlockFi intends to register a new crypto interest product called BlockFi Yield.

How do I apply?

New US customers can’t apply for a BlockFi Interest Account. If you try to apply for the account, you’ll be opening a BlockFi Wallet instead where you’ll gain access to BlockFi‘s trading and lending features.

Earning interest with BlockFi

BlockFi pays compound interest on 19 forms of crypto.

  • Basic Attention Token (BAT)
  • Binance (BUSD)
  • Bitcoin (BTC)
  • Chainlink (LINK)
  • Dai (DAI)
  • Ether (ETH)
  • Gemini Dollar (GUSD)
  • Litecoin (LTC)
  • Tether (USDT)
  • Paxos (PAX)
  • Paxos Gold (PAXG)
  • Uniswap (UNI)
  • USD Coin (USDC)
  • Filecoin (FIL)
  • Cardano (ADA)
  • Dogecoin (DOGE)
  • Algorand (ALGO)
  • Bitcoin Cash (BCH)
  • Cosmos (ATOM)

Interest starts accruing the day after assets are deposited, and BlockFi pays interest into your account on the last business day of each month. You can also choose which form of cryptocurrency you want to earn as interest. For instance, you can deposit Bitcoin (BTC) into your account but choose to earn interest in the form of Ethereum or any other supported form of crypto.

BlockFi has a tiered crypto interest structure that varies by asset.

CurrencyAmountAPY
BAT (Tier 1)0 – 4,000 BAT1.0%
BAT (Tier 2)> 4,000 – 20,000 BAT0.2%
BAT (Tier 3)> 20,000 BAT0.1%
BTC (Tier 1)0 – 0.10 BTC3.5%
BTC (Tier 2)0.10 – 0.35 BTC2.0%
BTC (Tier 3)> 0.35 BTC2.0%
BUSD (Tier 1)0 – 20,000 BUSD7.5%
BUSD (Tier 2)20,000 – 2,000,000 BUSD/td>6.0%
BUSD (Tier 3)> 2,000,000 BUSD6.0%
DAI (Tier 1)0 – 20,000 DAI6.0%
DAI (Tier 2)20,000 – 2,000,000 DAI4%
DAI (Tier 3)> 2,000,000 DAI3.50%
ETH (Tier 1)0 – 1.5 ETH3.5%
ETH (Tier 2)> 1.5 – 5 ETH2.0%
ETH (Tier 3)> 0.35 ETH2.0%
GUSD (Tier 1)0 – 20,000 GUSD7.5%
GUSD (Tier 2)20,000 – 2,000,000 GUSD6.0%
GUSD (Tier 3)> 2,000,000 GUSD6.0%
LINK (Tier 1)0 – 100 LINK1.0%
LINK (Tier 2)> 100 – 500 LINK0.20%
LINK (Tier 3)> 500 LINK0.10%
LTC (Tier 1)0 – 20 LTC2.0%
LTC (Tier 2)> 20 – 100 LTC1.0%
LTC (Tier 3)> 100 LTC0.10%
PAX (Tier 1)0 – 20,000 PAX7.5%
PAX (Tier 2)20,000 – 2,000,000 PAX6.0%
PAX (Tier 3)> 2,000,000 PAX6.0%
PAXG (Tier 1)0 – 1.5 PAXG1.0%
PAXG (Tier 2)1.5 – 5 PAXG0.20%
PAXG (Tier 3)> 5 PAXG0.10%
UNI (Tier 1)0 – 100 UNI1.00%
UNI (Tier 2)100 – 500 UNI0.20%
UNI (Tier 3)> 500 UNI0.10%
USDC (Tier 1)0 – 20,000 USDC7.5%
USDC (Tier 2)20,000 – 2,000,000 USDC6.0%
USDC (Tier 3)> 2,000,000 USDC6.0%
USDT (Tier 1)0 – 20,000 USDT7.25%
USDT (Tier 2)20,000 – 5,000,000 USDT6%
USDT (Tier 3)> 5,000,000 USDT4.5%
FILNo Limit2.0%
ADANo Limit10.0%
DOGENo Limit2.0%
ALGONo Limit2.5%
BCHNo Limit3.0%
ATOMNo Limit7.0%

Interest fees

Depending on market conditions, BlockFi may charge an administrative fee if you opt to have your interest paid in a form of cryptocurrency other than which it was earned. For instance, if you want to receive interest on your BTC in the form of ETH, you may pay a 1.5% fee of the total interest accrued during the month.

How to earn the highest interest rate with BlockFi

To earn BlockFi’s highest interest rate of 7.25% APY, your account must hold USDT. All other assets supported by BlockFi earn lower APYs, ranging from 0.1% to 7.25% based on the type and balance in your account. If you have more than $20,000 USDT in your account, the first $20,000 will earn 7.25% APY, but the portion of your balance that exceeds $20,000 but is less than 5 million will earn 6% APY.

BlockFi Interest Account withdrawal fees

If you hold any of the following forms of crypto, you are eligible for one free crypto withdrawal per calendar month.

CurrencyWithdrawal LimitFee per additional withdrawal during the same calendar month
BTC100 BTC per 7-day period0.00075 BTC
BUSD1,000,000 per 7-day period50 USD
DAI1,000,000 per 7-day period50 USD
GUSD1,000,000 per 7-day period50 USD
LTC10,000 LTC per 7-day period0.001 LTC
PAX10,000 LTC per 7-day period50 USD
USDC10,000 LTC per 7-day period50 USD
USDT10,000 LTC per 7-day period50 USD
FILNo limitNA
BlockFi doesn’t offer any free withdrawals for BAT, ETH, LINK, PAXG or UNI. Here are the withdrawal limits and fees for those cryptocurrencies.

CurrencyWithdrawal LimitFee per withdrawal
BAT2,000,000 BAT per 7 day period60 BAT
ETH5,000 ETH per 7-day period0.015 ETH
LINK65,000 LINK per 7-day period2 LINK
PAXG500 PAXG per 7 day period0.035 PAXG
UNI5,500 UNI per 7 day period2.5 UNI

Currently, you can only trade FIL on the platform. Meaning, you cannot deposit or withdraw these assets to or from the platform.

3 benefits of the BlockFi Interest Account

While the BlockFi Interest Account isn’t a traditional savings account, it offers some familiar benefits that can help you save:

  1. Any balance earns interest. Depending on which coins you hold, you could earn up to 7.25% APY with no minimum balance requirement. But if you want to take advantage of the $250 bonus offer, you’ll need to deposit at least $100 worth of assets.
  2. Available worldwide. Aside from sanctioned and watchlisted states and countries, you can open this account from anywhere in the world. But you currently can’t open an account if you live in Alabama, Kentucky, New Jersey, Texas or Vermont.
  3. Tax tools. BlockFi gives you access to a full suite of tax tools powered by TaxBit.

5 potential disadvantages to consider

Like other crypto savings accounts, BlockFi Interest Account lacks FDIC insurance. It also has these drawbacks.:

  1. Crypto deposits only. Some crypto savings accounts, such as Eco, Donut and Linus, accept USD deposits. You can’t deposit fiat money into this account, but you can deposit a variety of stablecoins and other cryptocurrencies.
  2. Limited access. BlockFi operates entirely online, so you can’t visit a branch or use an ATM.
  3. Rehypothecating funds. BlockFi reserves the right to lend, sell, or otherwise leverage your deposits multiple times over.
  4. Interest fee. If you opt to earn interest paid in a different cryptocurrency than you earned, you may pay a 1.5% administrative fee of the total interest you accrued that month.
  5. Limited free withdrawals. You only get one free withdrawal per calendar month for eight cryptocurrencies. Additional withdrawals cost $10 each, and the rate for crypto withdrawals varies by currency. These cryptocurrencies don’t offer any free withdrawals: BAT, ETH, LINK, PAXG or UNI. Also, BlockFi says it can take up to seven days to process withdrawals, but most are pushed through on the same day.

Is BlockFi Interest Account safe?

Crypto held in the account is not insured by the FDIC or SIPC. But crypto is held by Gemini Trust Company, which is regulated by the New York Department of Financial Services. BlockFi‘s website claims it offers the “highest degree of security available in the blockchain lending ecosystem,” but it doesn’t provide any specifics. However, BlockFi does use two-factor authentication to protect your account.

In May 2020, BlockFi announced it was the target of a hack in which user data was compromised, but no funds were lost. Aside from that incident, BlockFi hasn’t suffered any newsworthy attacks or breaches.

What cryptocurrencies can I use with BlockFi?

The BlockFi Interest Account supports the following forms of crypto.

  • Basic Attention Token (BAT)
  • Binance (BUSD)
  • Bitcoin (BTC)
  • Chainlink (LINK)
  • Dai (DAI)
  • Ether (ETH)
  • Gemini Dollar (GUSD)
  • Litecoin (LTC)
  • Tether (USDT)
  • Paxos (PAX)
  • Paxos Gold (PAXG)
  • Uniswap (UNI)
  • USD Coin (USDC)
  • Filecoin (FIL)

How does this compare to a traditional savings account?

The BlockFi Interest Account works like a traditional savings account, but you deposit crypto instead of US dollars and it’s not FDIC insured. Crypto you deposit earns a steady APY, and you can withdraw from the account at any time. But unlike a traditional savings account, BlockFi pays much higher APYs.

Compare BlockFi Interest Account to other savings accounts

Use this table to compare other popular savings accounts based on their APYs, fees and minimum deposits.

1 - 2 of 2
Name Product Supported cryptocurrencies Insurance
Gemini Earn
Finder Rating: 3.8 / 5: ★★★★★
Gemini Earn
40
N/A
Watch your cryptocurrency earn up to 8.05% APY with this nationwide account. Not FDIC insured.
Crypto.com Earn
Finder Rating: 4.6 / 5: ★★★★★
Crypto.com Earn
40+ cryptocurrencies and stablecoins available
N/A
Earn top-tier APYs on more than 40 cryptocurrencies and stablecoins. Not available in New York and not FDIC insured.
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Compare up to 4 providers

BlockFi reviews and complaints

BlockFi is not accredited by the Better Business Bureau (BBB), and it doesn’t have any customer reviews on the BBB’s website. But it earns an average rating of 3.5 out of 5 stars on TrustPilot based on more than 250 reviews.

A handful of negative reviews on TrustPilot mention that withdrawals take too long and customer service is poor. Positive reviewers applaud BlockFi for its high interest rate and user-friendly app. Reviews on Reddit are mostly positive, but several users have reported minor glitches and annoyances with the platform.

How do I deposit or withdraw money?

Existing US customers can’t make any new deposits into their account due to the SEC settlement, but they can move assets out of their account by tranferring crypto to an external wallet.

How can I get in touch with customer service?

Reach BlockFi customer service, by calling 646-779-9688 on weekdays from 9:30 a.m. to 5 p.m. ET or chatting with BlockFi‘s support bot, which can connect you with a human representative if needed.

Crypto savings ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We analyze top crypto savings accounts and rate them one to five stars based on factors that are most important to you. We rate accounts by these factors: highest potential APY, staking requirements, and how often interest is paid.

Read the full methodology of how we rate crypto savings accounts.

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