How to Earn Interest with Binance Savings

By CryptoBeaver | Crypto-universe | 12 May 2020

Binance Savings allows you to earn some sweet interest on various crypto-currencies. This is a great way to earn something when you wish to park your coins for a period of time. Interest paid varies according to the period of the time of your choosing. It is also worth to mention that interest rates do fluctuate as well. Two options are offered to you: Flexible and Locked Savings.

Flexible Savings

Flexible Savings allows you to redeem your coins at any time. The redemption process is actually instant and your coins are available to trade/withdraw right away. The downside with Flexible Savings is that the interest rate is less than what you would receive using Locked Savings. At time of writing, the top five annualized interest rates were as follows:

BUSD (Binance USD): 2.97%

USDT (Tether): 2.71%

ATOM (Cosmos): 2.29%

DASH: 1.97%

TRX (Tron): 2.00%

Other coins are offered (BTC, XLM, etc.) but the interest rates offered were very low compared to the list above, still it is better to earn something than nothing.

Locked Savings

Locked Savings come with much better interest rates but are only offered on a handful of coins (BUSD, EOS and USDT). For this option, you can select periods of 7 days, 14 days, 30 days and even 90 days. The longer the term you select, the higher the interest rate you would earn. At time of writing, annualized interest rates were as follows on BUSD (Binance USD):

7 Days: 6.71%

14 Days: 6.89%

30 Days: 7.06%

90 Days: 7.24%

At the end of the term, you can select that your coins be automatically placed on Flexible Savings.

From time to time, Binance will also offer a promotion to reward you with higher interest rates on your coins. The conditions, such as term and interest rate, will vary according to the promotion. There will also be a cap of the total number of coins that can be pledged so it is on the basis of first come, first serve (see example below for previous promotions).