Bitcoin savings accounts

A lot of people don't realise that Bitcoin savings accounts exist. They are what you would expect from normal savings accounts: you deposit an amount of Bitcoin, and you receive an interest rate.

The crucial difference, at time of writing, is that fiat savings accounts are offering practically nothing, but Bitcoin savings accounts are still offering attractive interest rates.

Savings Account	Interest Rate	Minimum Deposit	Fees*	Notes
FreeBitco.in	4.08%	0.0003		Includes games, lotteries and a faucet
StakeCube	7.572%	0.0005		Also offer LTC, DOGE and DASH savings accounts, and MN & POS hosting. Higher rates offered with SCC masternodes.

*Normal Bitcoin processing fees apply

This has a tax advantage in the U.K., and possibly in other territories. Gains in Bitcoin are treated as Capital Gains. With a fiat savings account you pay income tax on every interest payment. With a Bitcoin savings account you don't pay any tax until you liquidate. So you can effectively “re-invest” your interest payments without paying tax on the amount multiple times. C.G.T. is usually preferable in the U.K. as it works out cheaper for the investor, but this depends on your personal circumstances.

Correct at time of writing. Always do your own due diligence. Caveat emptor. Links use the author's referral code. Last updated 20/8/2020.

Sources:
https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-for-individuals (Retrieved 4/9/2020)