BlockFi Interest Account review
Sign up in less than two minutes to earn compound interest on your Bitcoin and Ethereum deposits
BlockFi aims to bring traditional financial services to the blockchain, offering up to 6.2% APY on investments and compound interest. But this is a new trading platform and isn’t available in all states.
Ongoing dispute between BlockFi and New Jersey
Recently, the New Jersey Bureau of Securities and BlockFi have entered into a legal dispute that BIA (BlockFi Interest Accounts) are technically unregistered securities under New Jersey law. New Jersey, along with several other states, is seeking to stop BlockFi from creating BIA accounts around the globe. For the time being, accounts are still accessible and usable.
What are the benefits of the BlockFi Interest Account?
While the BlockFi Interest Account isn’t a traditional savings account, it offers a number of familiar benefits that can help you save:
- Earn compound interest. Unlike other crypto storage methods, BlockFi pays interest on your deposit and savings, up to 6.2% APY.
- Security. Your crypto is held by the Gemini Trust Company, regulated by the New York Department of Financial Services.
- Available worldwide. Other than sanctioned or watchlisted countries, you can open this account from anywhere in the world.
- Withdraw anytime. While BlockFi says it can take up to seven days to process withdrawals, most withdrawals are pushed through on the same day.
- Easy registration. Sign up for an account in as little as two minutes.
What should I look out for?
BlockFi is a fairly new product and doesn’t have many reviews online, so there are a few things you might want to look out for:
- Crypto deposits only. This isn’t a traditional savings account, so you’ll only be able to deposit Bitcoin and Ethereum.
- No insurance. Unlike traditional savings accounts, your deposits aren’t protected by FDIC or SIPC insurance.
- Limited access. BlockFi operates entirely online, so you can’t visit a branch or ATM.
- Rehypothecating funds. BlockFi reserves the right to lend, sell, or otherwise leverage your deposits multiple times over.
- Exclusions. You can’t open an account if you live in New York, Connecticut, Washington or any country that’s sanctioned or on the watch list.
- Minimum balance requirements. You’ll only start earning interest once you have a balance of 0.5 BTC or 25 Ethereum.
Compare to other interest-earning investments
BlockFi reviews and complaints
As of November 2020, BlockFi reviews are generally mixed and scarce in volume. A handful of negative reviews on TrustPilot mention that withdrawals take too long and customer service is poor. Positive reviewers applaud BlockFi for its mobile app and user-friendly website.
Reviews on Reddit as of November 2020 were mostly negative, with some users noting average returns and that the interest paid isn’t worth the risk of handing over cryptocurrency like bitcoin. Others point out they don’t like the concept of transferring cryptocurrency from an unregulated space to one where it’s controlled and can be invested in something that fails. However, some praise BlockFi for reliability and on-time payments.
We couldn’t find a listing for BlockFi on the Better Business Bureau (BBB) as of November 2020. However, BlockFi has only been around since 2017.
How do I apply?
You can apply for a BlockFi Interest Account online in as little as two minutes:
- Visit the BlockFi website, hover over Interest Account and click Interest Account.
- Click Earn interest now.
- Enter your email and set a password to create an account.
- Enter the verification code that was sent to your email..
- Once you’ve logged into your account, click Deposit to verify your identity and start making deposits.
- Enter your personal information then proceed to the identity verification stage.
- Upload your passport, driver’s license or ID card and wait for verification.
In order to open and use the BlockFi interest account, you’ll need to meet a few eligibility requirements:
- At least 18 years old
- Valid email to confirm the verification code
- Live in any of the permitted countries
- Valid phone number
- Passport, driver’s license or ID card
- At least 0.5 BTC or 25 ETH to earn interest
To use this account, you’ll need to provide the following information:
- Email address
- Valid US government-issued ID
- Verification code
- First and last name
- Date of birth
- Phone number
- Photo of your passport, driver’s license or other ID card
How do I deposit or withdraw money?
Once you’ve created an account, you can deposit BTC or ETH directly from your account dashboard:
- Deposits: Send your deposit to the unique wallet address provided when you click deposit.
- Withdrawals: Click the withdraw button or email firstname.lastname@example.org to start the withdrawal process.
How can I get in touch with customer service?
If you need to speak with BlockFi customer service, you can contact a representative at email@example.com.
The BlockFi Interest Account is a unique way for crypto investors to grow their holdings, as it’s currently the only crypto storage option that pays interest. However, you’ll need to deposit at least 0.5 BTC or 25 ETH to earn interest and your deposits aren’t protected by FDIC or SIPC insurance. Not sure if it’s right for you? Compare your options to see what else is out there.