In this article, we will list where to find the best Ethereum interest rates.
Why is it important to find the best interest rates on Etheruem?
This is important since you want to hold your Ethereum where you get the best interest rates and the highest returns. This will have huge impact on your long term return on investment.
If you are interested in alternative ways to earn passive income, you should read our article on Bitcoin passive income.
Where to get the best Ethereum ETH interest?
There are a few interesting sites offering great interest returns on Ethereum. There might seem like a small difference if one site is offering 5% and another 7%.
However, in the long run such a small difference in interest rate will give a major impact due to interest on interest effect.
*Sign up bonus with terms and conditions
Ethereum interest on Celsius
Celsius do offer interest on your Ethereum holdings and the interest rate is good.
You can get up to 5.05% interest in Ethereum with Celsius.
However, it’s quite complicated 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 your CEL token holding ratio is. Your loyalty level is dependent on this ratio. If you already are a member you can find this under My CEL
Celsius Pros and Cons
Pros and Cons
+ Get $40 when you invest $400 with our referral code and keep it for 30 days
+ Earn interest in CEL token
+ Earn more by holding CEL token
– No Exchange in the app
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 of all accounts presented in this article.
Nexo has, similar to Celsius, a loyalty system where the payouts are dependent on two things
- If you decide to receive the payout in Nexo token, or not
- You Nexo holding ratio
Nexo Pros and Cons
Pros and Cons
+ Highest returns on the interest account
+ Get payout in NEXO token and earn dividend on NEXO token
+ Fiat deposit for 12% interest account
+ Deposit minimum $100 and get $10 FREE
Ethereum interest on BlockFi
BlockFi is offering a plain interest on Ethereum with no loyalty program.
You can get up to 4% interest on Ethereum with BlockFi. Also, you can get a first deposit bonus worth $250.
You have the option to 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 for free.
Read the full BlockFi review.
Nexo Pros and Cons
Pros and Cons
+ Best welcome bonus
+ Exchange and trading feature
Ethereum interest on YouHodler
YouHodler is offering an Ethereum interest account with 5.5% interest rate.
This is the highest return with no obligations. With Crypto.com, NEXO and Celsius you can get a better APY but it comes with obligations such as holding their native coin and also get the interest paid in their native coin.
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.
Therefor, YouHodler is offering 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)
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.
We only use Crypto.com for a small amount of our total holdings.
Read the full Crypto.com app review.
Celsius Pros and Cons
+ Good Ethereum interest rate if you stake 40.000 USD worth of CRO
+ Good welcome bonus worth $25
+ Great mobile app
– 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.
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.
Staking Ethereum On Kraken to earn passive income
It´s possible to stake ETH 2.0 on Kraken. 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.
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.
See the video below for more information on Ethereum.