What is Binance Savings?
Binance Savings is a product of Binance Earn that provides users the opportunity to store their crypto assets in a crypto savings account which functions similarly to the usual traditional bank savings account that gives users interest on their deposits. As a crypto savings account, it gives users access to better interest rates than traditional banks, helping you earn passive income on your crypto holdings.
How Does Binance Savings Work?
Binance Savings serves as an additional means for users to earn passive income on their idle crypto assets. There are no fees charged for using Binance Savings for both redemption and subscription. Users can access the Binance Savings page on both the mobile apps and also the website, and it is available to all users as long as you have some crypto in your spot wallet.
Binance Savings is available in two major subscription categories namely: Flexible Savings and Locked Savings.
Flexible Savings: Just as the name implies, this subscription plan offers users flexibility with their crypto savings. You can transfer your assets here, to earn interest, and redeem them at any time you wish to. Whenever you have some idle assets in your Spot Wallet holdings, it would be preferable to transfer them into your Flexible Savings account. Since you can access it at any time, you can easily allow those assets to work for you whenever they aren’t being used anywhere else.
Flexible Savings has an Auto-Subscription feature that helps users automatically transfer their assets from the spot wallet to the savings wallet. It also helps by auto compounding your interest earned from savings daily, it takes the earned interest and subscribes them into Flexible Savings. It is beneficial for users like me who sometimes feel lazy to click subscribe button each time they have some idle assets in their wallet. This is one of my favorite features of Binance Savings.
The interest amount is calculated and distributed daily to your Spot Wallet depending on your assets available in flexible savings. The interest amount is rounded down to 8 decimal places. Please kindly note that there’s no interest accumulated on products purchased on the day of subscription. Interest is calculated the next day.
Binance now offers a tiered saving rate system for specific types of cryptocurrencies. This works by offering different levels of APY (annual percentage yield) according to the amount being deposited in the Flexible Savings. For example, if you want to deposit USDT into your Flexible Savings, for any deposit in the range of 0 - 2,000 USDT your interest will be calculated at 10.00% APY, for the next tier of 2,000 - 75,000 USDT your interest will be calculated at 3.00% APY, while for the last tier of any amount over 75,000 USDT your interest will be calculated at 1.00% APY.
Locked Savings: This subscription plan offers users higher interest rates compared to Flexible Savings because the assets are locked up for a preselected period of time to accrue interest (e.g 7 days, 14 days, 60 days, 90 days, etc). The interest rates also vary depending on the duration selected for the Locked Savings, the longer the duration, the higher the interest rates. After depositing your assets into the locked savings, you will be unable to redeem their assets until the redemption date approaches.
Users have the ability to resubscribe to Binance Staking and Locked Saving products when their locked saving period has expired.
If you’ve invested in Binance Staking or Locked Savings products, you’ll have to wait until the subscription period is over before subscribing your earned interest back into one of those two products. One way to maximize your gains is to reinvest your principal and earnings as soon as the campaign ends. For example, with a 90-day subscription period, you’d only need to compound four times a year. How’s that for efficiency?
Binance Savings also offers some special high-yield offers which are available on both the Flexible & Locked Savings options (eg. AXS, CAKE, DREP, CHZ, LUNA, SAND, APE, BNX, WAVES, QTUM, ZEN, ZRX…) offering up to 70% APY on selected tokens.
Benefits of Binance Savings compared to Traditional Bank Savings
- Ease of access: Anyone with a Binance account can easily access the Savings feature, and even if you don’t have one you can easily create one on the site or by downloading the app available on the App Store from your mobile device. It is easier to make use of Binance Savings to earn passive income as opposed to your traditional bank savings, where you may need to be physically present at the bank location to perform such transactions.
- Improved Interest Rates: The interest rates on the Binance Savings platform can go as high as 70% which isn’t achievable with our traditional banking system all over the world. Also the interest reates on Binance Savings doesn't fluctuate according to market conditions, the rates are guaranteed by Binance.
- Zero Risk: There is no risk in using the savings feature on Binance, it is absolutely safe to use for all users without any restrictions. You can also monitor your deposited funds on the Binance Savings page ensuring the guaranteed safety of your funds. You do not get such an opportunity when you save with a traditional bank, in the sense that you cannot monitor your deposited funds.
- Flexibility: Users have the freedom to redeem their assets from the Flexible Savings account whenever they want to, and the amount will be transferred back to their exchange wallet which can be used to trade or withdraw. With traditional banks, the funds in your account cannot be moved freely to perform certain transactions.
- Wide range of supported tokens: There are around 170 tokens available on the Binance Savings platform, this gives users the opportunity to save their favorite tokens held in their Binance Wallet to earn rewards. You can choose from dozens of digital assets like Bitcoin, Ethereum, and stablecoins.
- No Limitations: Users aren’t limited to just having their funds locked in the savings account on Binance, assets like BNB subscribed to any Binance Savings product will count towards the snapshot calculations for Binance Launchpad. That means you can participate in Binance Launchpad while earning interest on your holdings! Win-win!
Binance Savings makes it easier than ever to grow your crypto assets, even while you sleep. Binance usually offers a limited welcome bonus for first-time Savings users from time to time, like this. To get started, register for a Binance account and buy crypto. If you already have a Binance account, you can proceed to set up your passive income stream with either the Flexible Savings or Fixed Savings.
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