What is a Crypto Interest Account (Guide)

The majority of regular banks in the world no longer pay out interest to customers. If they do, it’s such a paltry amount that it hardly seems worth it. So, we want to discuss another option for you. Let’s learn what is a crypto interest account and how it works.

During the coronavirus pandemic lockdown, many astute investors with extra time on their hands realized the undeniable potential of crypto. We expect to see blockchain currency grow in the next few years, and crypto interest accounts look set to be a significant driving force. The lack of mainstream insurance means some people are hesitant to take the risk. However, Haru’s asset management business model mitigates most of these financial risks by offering institutional loans to the lowest-risk clients.

Read on to find more about why now is the best time to open a cryptocurrency interest account to store your crypto assets.

What is a Crypto Interest Account

Sensible investors aren’t jumping headfirst into crypto trading or Bitcoin handling. Instead, they’re opting to purchase cryptocurrencies such as Bitcoin, Ethereum, Tether and Terra KRT and deposit it in a crypto interest account. These banks hold your currency and payout interest in return. At Haru, we aim to offer the highest interest rates in the world of crypto interest accounts.

Crypto interest schemes have been growing in popularity for years, but experts are starting to think they’re the future of crypto. At the very least, an interest account is an ideal gateway into this financial market and an excellent way to earn interest on crypto.

How the Crypto Interest Account Works

You might be surprised to learn how the interest account works because it’s so simple. You can earn up to 15% APR just for storing your Bitcoin, Ethereum, Tether and Terra KRT at Haru.

All you need to sign up for our crypto interest account is an email address. Once you’ve created an account, you securely deposit your chosen cryptocurrency into your Haru wallet. Choose between a no lock-up or one-month lock-up account — bear in mind that the latter offers higher interest rates.

Next, click on your chosen cryptocurrency and read the terms and conditions. Check the amount of interest you’re entitled to and submit your first deposit! You can watch your timeline as the earning stack up over the months and years.

Did COVID-19 Drive Demand for Cryptocurrency?

We’ve learned a lot about the vulnerability of our outdated financial institutions since the credit crunch in 2007 and 2008. In particular, the governments hurry to use quantitive easing — printing money — puts the fiscal future of many businesses and institutions at risk. Although it might help in the short term, we’ll face extremely high inflation rates sooner rather than later.

The coronavirus led to an economic shutdown, unlike anything seen during peacetime in the Western world. Although the markets have recovered somewhat since March, it’s clear that the way we invest is due a change.

Additionally, job losses are necessitating many people to seek ways to make their money go further.

Lending-Deposit vs. Asset Management

Haru is different from most other interest-bearing cryptocurrency accounts because it uses an asset management business model. Unlike Nexo, Celsius, Donut, BlockFi and Dharma — which use the much riskier lending-deposit business model.

What Is the Lending-Deposit Business Model?

In addition to offering interest accounts, lending-deposit accounts provide quick loans. These loans are given out without any credit check or KYC checks, so people can take one out relatively quickly. In some cases, an internet connection and an email address is the only requirement. As you can imagine, that extreme volatility leads to a high default rate.

If a crypto lending account makes massive losses, it could risk folding — meaning you’d lose the investment.

What Is the Asset Management Business Model

At Haru, we use the asset management business model to ensure you safely earn interest in crypto. This means we work exclusively with asset management partners such as Block Crafters Capital. They diversify your investment and use their expertise to grow your capital using low-risk investment strategies like arbitrage trading and quant training.

Learn More: Crypto Asset Strategies

How Does Haru Choose Partners?

Once your crypto assets have been deposited into your Haru account, our partners manage them. We only work with partners who have a track record for excellence and meet our stringent vetting process. Partners must meet the following criteria:

  • Profit margin higher than the industry average
  • A minimum of 18 months of asset management experience
  • Trading volumes above $100 million
  • At least four industry experts who understand algorithmic crypto trading
  • They must be legally registered

Learn More: Best Crypto Investment Firm

How is Haru Able to Offer a High ROI?

We aim to offer the most stable and comfortable method of crypto deposits and savings. Interest rates for crypto loans are substantially higher than traditional loans because of the additional risk associated with market volatility. At Haru, we pass the extra money accrued from these high-interest rates onto account holders who front the capital.

Earn crypto interest

More and more people are using Haru to keep their crypto asset smart. Give it a try!

Because we offer low-risk institutional loans and asset management, we’re able to provide high-interest rates. Additionally, you get extra stability with us compared to lending-deposit crypto interest accounts.

What Are the Risks Associated With Crypto Banking?

The main risk of crypto banking and lending is the high default rate in comparison to traditional financial markets. This extra market volatility is the result of the lack of checks imposed on a borrower. If those who take out a crypto loan don’t pay it back, crypto lenders can make significant losses. When volatility is high, lenders compensate for it with high-interest rates on loans.

You don’t need to concern yourself with these risks when you borrow from a crypto interest account that uses the asset management business model. Rather than relying on the volatile market, expert partners grow your assets through low-risk strategies and investment diversification.

Extra Security Measures for Crypto Interest Accounts

If you’re considering using a crypto interest account, make sure you clearly understand how your money is being managed. Loans given out to individuals and organizations without the checks they’d face in a regular bank put your money at a higher risk. You could opt for a lending-deposit account that lends to a particular type of borrowers and carries out stringent checks.

However, to mitigate the risks associated with high default rates, you should store your blockchain in an asset management crypto interest account.

Some borrowers might be put off by the lack of insurance associated with lending-deposit crypto accounts. Most of them aren’t protected by large-scale insurance, nor are they FDIC-insured. However, the cybersecurity measures in place are far more stringent than those of a regular bank. At Haru, we’ve gone over and above any other crypto bank to ensure the security of our client’s funds.

What Else Makes Haru Stand Out?

The fact that Haru uses the asset management business model isn’t the only reason we’re the best interest-bearing crypto account. Some other features that set us apart include:

Earn Daily Interest on Your Cryptocurrency

You can benefit from daily compound interest instantly with one of our crypto interest accounts. Whereas standard banks can barely offer more than 1% interest, and lending-deposit accounts are too volatile, Haru delivers the best of both worlds. There’s nothing quite as satisfying as watching your savings grow daily.

Learn More: Earning interest on interest


Crypto assets are more time-sensitive than pretty much any other type of investment. The best interest-bearing crypto accounts give clients the option of locking up their assets or giving you open access. If you opt for Haru’s monthly lock-up account, you benefit from even higher interest rates. Some of our clients earn 15% APR interest just for storing their crypto with us.

High-Interest Rates

We aim to provide higher interest rates than any other cryptocurrency bank, and we understand the client’s need for stability. The financial markets are undergoing a paradigm shift, with cryptocurrency’s position in the market set to strengthen. Investing in crypto is still in its infancy, and even those who start investing now are ahead of the curve.

Attracting New Investors in Cryptocurrency

With extra cybersecurity measures in place and the high standards of the asset management business model, new investors are flocking to cryptocurrency.

While it’s a volatile asset, experts agree almost unanimously that blockchain is only set to continue its growth trajectory.  If you’re considering making your first crypto investment, an asset management crypto interest account is one of the lowest risk ways to do it.

Earn Interest on Crypto Today

Now, we’ve answered the question of what is a crypto interest account, and you’re equipped with the information you need to make a smart crypto investment. Discover more about Haru on our blog and open an account with us today to start making money.

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