This article will list where to find the best Ethereum interest rates.
Why is it important to find the best interest rates on Ethereum?
It is essential to find the best interest rates since you want to hold your Ethereum where you get the best interest rates and the highest returns. The highest rates will have a massive impact on your long-term return on investment.
If you are interested in earning interest from other cryptocurrencies, see our page where all the best crypto interest rates APY and staking rewards are listed.
No Financial Advice, Information only. Do your own research
Where to get the best Ethereum ETH interest?
A few exciting sites are offering great interest returns on Ethereum. There might seem a slight difference if one place provides 5% and another 7%.
However, such a slight difference in interest rate will significantly impact the interest on interest effect in the long run.
**Reduction in fees
Ethereum interest On Midas Investment
Midas.Investment is a custodial investment platform for cryptocurrencies. Here, you can generate passive income with the major cryptocurrencies, like Ethereum ETH and many others.
Midas Investment has been live since 2018 generating opportunities in the crypto economy and Defi market.
Midas Investment generates yields by running different models of volatility prediction, correlation, strategies, collateral asset models, and hedging.
Main strategies are
- Concentrated liquidity provider for Uniswap V3
- Borrowing for target asset’s collateral to free liquidity
- Yield vaults
- Asset+Stable liquidity provider to hedge from market pullbacks
- Leveraged liquidity farming
Earn Ethereum ETH interest with Yield App
YIELD App offers interest on Ethereum ETH, Bitcoin BTC, and some stablecoins. The yield app is a custodial and centralized investment platform gaining interest by Defi exposure.
Here, you can deposit and earn some great interest rates, especially if you plan to reach the higher tier levels.
Read more about the Yield app and tier-level interest rates in our review.
Ethereum interest on Celsius
Celsius do offer interest on your Ethereum holdings, and the interest rate is reasonable.
You can get up to 5.05% interest in Ethereum with Celsius.
However, it isn’t straightforward to understand the Celsius payout system since it depends on two variables.
- If you decide to receive your payouts in Ethereum or the CEL token.
- What is your CEL token holding ratio? Your loyalty level is dependent on this ratio. If you already are a member, you can find this under My CEL.
Celsius Network Pros and Cons
- Get $50 when you invest $400 with our referral code and keep it for 30 days
- Additional deposit bonuses where you can get up to $2000 in one single deposit bonus
- Earn interest in the CEL token
- Earn more by holding a CEL token
- Complicated loyalty system
Celsius Loyalty Levels
Celsius Network loyalty levels are summarized in the table below. There are four levels Bronze, Silver, Gold, and Platinum.
How many CEL do you need to hold to achieve a certain loyalty level? For Platinum, have>25% or 25.000 CEL, whichever is lower.
Bonus: What bonus reward will you receive for each loyalty level?
Discount: How much discount on the loan interest rate will you get if you take a loan?
Celsius SignUp Bonus
Celsius has a great signup bonus where you will get $50 in BTC when you sign up with our referral link and deposit at least $400. The bonus will be released after 30 days.
Ethereum interest Rate on NEXO
NEXO has the highest interest rate on Ethereum holding in its interest account.
You can get up to 8% interest on Ethereum with NEXO. This is the best interest rate of all accounts presented in this article.
NEXO has, similar to Celsius, a loyalty system where the payouts are dependent on three things
- If you decide to receive the payout in NEXO token or not
- Your NEXO holding ratio (NEXO value / Portfolio value)
- If you decide to lock your funds (Usually one month)
Nexo Pros and Cons
- High-interest rates
- Exchange feature
- Nexo crypto MasterCard
- Many cryptocurrencies available
- Possible to earn high interest on fiat deposits
- Lowest credit card fee for fiat deposits in the EU
- High-interest rates on stablecoins
- Regulated and licensed crypto interest account with insurance
- A complicated system with loyalty levels, lock-up periods, and payout options to receive the highest interest rates on Nexo.
Ethereum interest on BlockFi
BlockFi is offering a plain interest on Ethereum with no loyalty program.
You can get up to 5% interest on Ethereum with BlockFi. Also, you can get a first deposit bonus worth $250.
BlockFi is using a tier system for the interest rates. Below, you find the Ethereum interest rates
|ETH (Tier 1)||0 – 1.5 ETH||5%|
|ETH (Tier 2)||1.5 – 5 ETH||1.5%|
|ETH (Tier 3)||> 5 ETH||0.25%|
You can select what cryptocurrency you want to receive the interest payments in.
The interest payments are paid once every month.
The best thing with BlockFi is the simplicity and the great bonus they have for your first deposit.
You can get up to $250, which is the best free crypto first deposit bonus 2021.
Read the full BlockFi review.
BlockFi Pros and Cons
BlockFi Bitcoin Rewards Credit Card
BlockFi has launched the first Bitcoin rewards crypto credit card.
With the BlockFi Bitcoin rewards VISA credit card, you can earn an unlimited 1.5% cashback in Bitcoin on every purchase.
See our BlockFi credit card review for more information.
$250 BlockFi SignUp Bonus
BlockFi has probably the best signup bonus among all interest accounts. Here, you can get $15 when you deposit $100 but you can get up to as much as $250. Go to BlockFi via our link for full terms and conditios.
Ethereum interest on YouHodler
YouHodler is offering an Ethereum interest account with a 5.5% interest rate.
5.5% is the highest return with no obligations. With Crypto.com, NEXO, and Celsius, you can get a better APY, but it comes with responsibilities such as holding their native coin and getting the interest paid in their native token.
Also, with Binance and Kraken, you can get better APY, but here you have to stake your ETH into ETH 2.0, and after this, you can´t move them until Ethereum switches from Proof-of-work to Proof-of-stake.
Therefore, YouHodler offers the best Ethereum ETH interest rate of 5.5% with no lock-up periods and payouts made in ETH.
Read more about YouHodler in our review.
YouHodler Pros and Cons
+ No lock up periods
+ Payouts in the deposited coin (no native coin)
– Minimum $100 and maximum $100.000 (equivalents you can earn interest on)
YouHodler Best Interest Rate Cryptocurrencies
Ethereum interest on Crypto.com
Crypto.com is offering 5.5% + 3% Ethereum interest if you lock your assets for 3 months.
In addition, you must stake at least 40.000 USD worth of CRO to get the extra 3%.
This interest is among the highest. However, there are not many people staking 40.000 USD worth of CRO which will leave the Ethereum interest rate at 5.5%. You can get 6.5% if you stake at leat 4.000 CRO.
Also, if you stake CRO you will get a VISA card with great benefits like free Netflix, free Spotify, free Amazon Prime and up to 8% cashback. Read more about CRO VISA card staking requirements and rewards.
We only use Crypto.com for a small amount of our total holdings.
Read the full Crypto.com app review.
Crypto.com Earn Pros and Cons
- Good Ethereum interest rate if you stake 40.000 USD worth of CRO
- Good welcome bonus worth $25
- Great mobile app
- Crypto.com CRO VISA card
- More features like Supercharger. See Crypto.com supercharger calculations and review
- You need to stake 4.000 USD worth of CRO for the first stage of increasing Ethereum interest rate
- You need to stake 40.000 USD worth of CRO to get the highest return.
- You have to lock your Ethereum for 3 months to get the highest return.
$25 Crypto.com SignUp Bonus
When you signup with Crypto.com via our referral link and stake CRO for a Ruby metal VISA card ($400) you will get $25 in a welcome bonus. The ruby card will give you 2% cashback on all purchases and 100% back on Spotify.
Crypto.com Referral Code: mcmk7qgbhh
Staking Ethereum On Binance to earn passive income
It´s possible to stake ETH 2.0 on Binance. The current payout for staking ETH 2.0 is around 5-7%.
Staking is a very easy procedure to do on Binance.
- Sign up with Binance
- Login and click on Finance in the top menu
- Select Binance Earn
- Search for ETH in the search bar
- Here, you will see the ETH 2.0 staking alternative showing up
- Click Stake and follow the instructions
Read more about Binance in our Binance review.
Binance Best Interest Rate Cryptocurrencies
Staking Ethereum On Kraken to earn passive income
It´s possible to stake ETH 2.0 on the Kraken USA regulated crypto exchange. The current payout for staking ETH 2.0 is around 5-7%.
Staking is a very easy procedure to do.
- Login to your Kraken account
- Click on staking in the top menu.
- Here, you click the purple button to Stake and click on the asset you prefer to stake.
- After this, you enter the amount you want to stake.
Now you can enjoy your Ethereum passive income on Kraken.
Kraken is a regulated US crypto exchange, similar to Coinbase. If you are a US citizen and is looking for a safe place to stake your Ethereum ETH, see our article about Kraken staking rates APY VS Coinbase staking rates rewards.
Coinbase Ethereum ETH Staking Rewards
When you stake Ethereum ETH on Coinbase you will receive 4.5% APR in rewards. This is not the best Ethereum ETH staking rewards, as you can see in the table above.
However, the main reason people go for Coinbase is because they have a user-friendly interface and a long well-known history for running a great company.
Still, Kraken is similar to Coinbase, also an US regulated crypto exchange with a great track history and great staking rewards.
Read more about Kraken staking rates VS Coinbase Staking rates.
Risks with Ethereum Interest Savings Accounts
What are the Risks?
As for any investment, there are risks associated with Ethereum interest savings accounts.
Some of the risks are, but not limited to
- The company you deposit into can go bankrupt
- The company you deposit into can be hacked
- The cryptocurrency you own can loose in value (Also, some of the above companies have lock up periods and you might not be able to sell in time)
Always consider the risks before you invest in any product at all. In our article about the best Polkadot DOT interest rates you can find an easy calculation example where you can evaluate the risks versus the rewards.
How to minimize the risks?
One important thing to handle is risk diversification.
Some examples of risk diversification are
- Limit you crypto exposure risk by not invest all your savings into cryptocurrencies
- Invest in more than only 1 cryptocurrency
- Do not invest all your cryptocurrencies into the same exchange or interest saving account
Read more about crypto risk management.
Why is it important to search for the best Ethereum ETH interest rate?
It´s very important to try to get the best Ethereum ETH interest rate.
To explain this, we simply refer to the interest-on-interest effect, also known as the compounding effect.
What does this mean?
It means that a value will grow exponential (not linearly) as the basic capital grows.
How can this happen?
Well, this is simple mathematics and most people can´t really visualize this and don´t care if they receive 0%, 5% or 8% yield on their asset because it is so little difference over 6 months or 1 year.
However, on a 10 or 20 year term the difference is huge. We have done an example for the best USDT interest rates where you easily can visualize how important it is to aim for the best interest rate.
What is Ethereum ETH and ETH2?
Ethereum is a proof-of-work network that will switch to a proof-of-stake network in late 2021 or early 2022.
In September 2021, it is the largest smart contract network and no one can´t really threat that position right now even if there are many “ETH killers” like Cardano, Polkadot, Solana, Avanlanch and Cosmos. We also have articles to earn interest on those layer 1 blockchain networks.
- Best Solana SOL interest rates and staking rewards
- Best Avalanche AVAX interest rates and staking rewards
- Best Cardano ADA interest rates and staking rewards
- Best Polkadot DOT interest rates and staking rewards
- Best Cosmos ATOM interest rates and staking rewards
For more information about Ethereum, see the video below for more information on Ethereum.
How to pay tax on Ethereum ETH interest Payouts?
Yes, you need to report Ethereum ETH interest payouts into your tax file.
Luckily, there are several crypto tax software automating this procedure for you.
They can all import your transactions and automatically categorize them and calculate your local tax in your fiat currency.
The best crypto tax software we have used are Cointracking and Koinly and they also provide a free version.
No Financial Advice, Information only. Do your own research