For people who have cryptocurrency as well as fiat, it is important to choose a crypto friendly bank. While there are plenty of workarounds if your bank isn’t crypto friendly, it makes it much easier if it is.
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What Makes a Bank “Cryptocurrency Friendly?”
There are varying definitions of crypto friendly banks. For some people, a bank is only crypto friendly if you can hold cryptocurrency with them, or they work directly with a crypto exchange or wallet to let you do so.
For others, as long as a bank approves your transactions to purchase cryptocurrency, they are crypto friendly. This definition is less common than the previous one. In general, if someone mentions cryptocurrency friendly banks in the UK, it is safe to assume they accept cryptocurrency.
If you don’t know for sure whether you are dealing with crypto friendly business banks, you should typically assume they are not crypto friendly. Banks are hesitant to work with cryptocurrency for a few reasons. These include its volatility and the ever-changing regulations surrounding them. That combination makes holding cryptocurrency risky for a bank.
On the other hand, a growing number of banks have realized that there is a high demand for crypto friendly banks. This has led to numerous established financial institutions around the world becoming crypto friendly. Any cryptocurrency friendly bank in the US will always make it a point to stay up to date with crypto regulations. This lets them avoid potential fines and plan for changing restrictions.
Do Banks Accept Bitcoin? Can I Transfer Bitcoin to My Bank Account?
The answer really comes down to the bank that you choose. Crypto friendly banks will typically accept Bitcoin. Many will let you transfer Bitcoin into your bank account just like you would make any other Bitcoin transfer. This frequently involves working with a well-respected cryptocurrency wallet or exchange to hold the crypto.
It is also possible for a bank to accept Bitcoin for payments, such as on your mortgage or auto loan. In that case, they still may not let you transfer Bitcoin to your account. Or a bank may let you make a deposit using Bitcoin but automatically convert it to fiat at the time of the deposit.
The important thing to remember is that the vast majority of banks will not accept Bitcoin. If a bank doesn’t accept Bitcoin, you definitely won’t be able to transfer it to your bank account.
The bottom line is that if you want to know if a bank accepts Bitcoin, you need to look at its specific rules. Every bank is different, and there are variations even among crypto friendly business banks.
What’s the Point of a Crypto Friendly Bank?
A crypto friendly bank lets you store all (or most) of your assets in one spot. You don’t need separate accounts for cryptocurrency and for fiat. Having fewer accounts makes it easier to manage your finances.
Crypto friendly banks also tend to give you extra confidence. After all, major banks have a reputation to maintain, so they will do their best to ensure your crypto banking experience goes smoothly.
Crypto friendly business banks add an extra layer of importance. These will appeal to companies working in the crypto space. Essentially, one of these banks is much more likely to let you open a business account for a crypto-related business, even in fiat, than a non-crypto friendly one.
Crypto Friendly Banks the USA
The following are some of the most popular cryptocurrency friendly banks US residents can use:
- Chime Bank
- Goldman Sachs
- Simple Bank
Remember that the level of crypto friendliness can vary by bank. That is true for the above banks in the US as well as the following lists for the UK and worldwide. To discover exactly what the bank allows in terms of cryptocurrency, check their website or talk to their representatives.
Crypto Friendly Banks UK
The following list shows the most popular cryptocurrency friendly banks UK residents have available to them:
- Capital One
- Lloyds Bank
- Royal Bank of Scotland
- Standard Chartered Bank (SCB)
- The Cooperative Bank
- TSB Bank
- Virgin Money
Crypto Friendly Banks Worldwide
The following list includes crypto friendly banks outside of the US and UK:
- National Bank of Canada
- Royal Bank of Canada
- Bank Frick
- Fidor Bank
- Change Bank
- LHV Bank
- Mister Tango
- Czech Republic
- QNB Finansbank
- Kuveyt Turk Katilim Bankasi
- Ziraat Bankasi
- Garanti Bankasi
- Is Bankasi
- Banco Masventas
Start Earning Interest on Your Crypto With Haru
There are many reasons that you may be interested in opening an account with crypto friendly banks. However, you should remember that if you deposit crypto into your account there, it likely will not collect interest. While your crypto will be safe, it won’t increase.
A good alternative is to put it in an account that will let you earn interest. For example, Haru offers the Haru Earn Plus account, which is a cryptocurrency savings account. Think of it as an alternative to a crypto friendly bank but designed with cryptocurrency in mind. This contrasts with the above crypto friendly banks that adapted their fiat services for crypto. On top of that, many of the above banks only support Bitcoin, but Haru Earn Plus supports Bitcoin, Ethereum, and Tether USD.
With Haru Earn Plus, you get to choose how long you want to lock up your cryptocurrency, between 15 and 365 days. The longer you lock it up, the higher your interest rate will be. Depending on what you choose, you can gain anywhere from about 7.1 to 15.4% interest on your cryptocurrency. Your earn rate gets fixed at the time of your lockup, and Haru updates the earn rates based on the market every two weeks. You can view the most recent earn rates on the Medium page. To help you build that interest even more quickly, it compounds daily. To put that in perspective, typical fiat bank accounts will compound interest monthly.