Earning interest with Xapo Bank is designed to be simple and sustainable. Simply allocate your funds to your dedicated USD and BTC Savings accounts in the app, or utilise one of our range of savings products that pay interest in Bitcoin. Your balances will begin accruing interest at our competitive Annual Percentage Yield (APY), allowing your wealth to grow seamlessly without the need for active management.
FAQs
Wealth & Yield
Explore how to grow your portfolio steadily by earning competitive yield on both your US Dollar savings and your Bitcoin balances.
USD Savings
We prioritise the safety of your wealth above all else. Unlike many platforms, we never engage in high-risk lending or speculative trading to generate returns. Instead, we generate yield through conservative, institutional-grade financial strategies. This primarily involves investing in High Quality Liquid Assets (HQLA), such as short term US Treasuries and Corporate Bonds. This disciplined, traditional banking approach ensures consistent returns whilst rigorously protecting your principal.
Bitcoin Savings
The Bitcoin held in your regular Xapo Bank Savings account is never deployed, lent out, or used for speculative trading. It remains completely secure and strictly reserved on a 1:1 basis. The yield you earn on these savings is currently subsidised directly by Xapo Bank. We choose to pay this interest out of our own capital as a way to reward our members for choosing Xapo Bank as the secure home for their Bitcoin wealth.
For members who choose to allocate their Bitcoin to our higher-earning wealth strategies, these generate returns through a strictly managed institutional lending model. Yield is generated by lending Bitcoin to a carefully diversified and rigorously vetted portfolio of established, well-capitalised tier-1 institutional counterparties. These advanced Bitcoin strategies earn revenue via interest payments from these counterparties.
While the primary risk associated with this strategy is credit risk, the conservative approach is governed by strict risk-management protocols. By employing thorough due diligence and continuously updating counterparties’ credit information, these grant you peace of mind to earn a steady, reliable return on your digital wealth while exposing your assets only to highly credible institutional borrowers.
Interest on both your fiat and Bitcoin savings is calculated and paid out on a daily basis, in Bitcoin. Each day, your earnings are automatically deposited directly into your Bitcoin savings balance. Because these daily payouts are immediately added to your principal, your interest compounds daily, allowing your wealth to grow continuously with absolutely no manual intervention required. Within certain advanced Bitcoin strategies, you may be able to choose to receive your interest monthly as a payout or have it go back into the principal to compound.
There are no lock-up periods or minimum term requirements for Xapo Bank’s savings accounts. Your funds remain entirely liquid, meaning you can transfer your assets in and out of your savings accounts at any time without facing early withdrawal penalties or sacrificing the interest you have already accrued. However, access to some features within our suite of savings products may require additional lock-up periods of 30 days or more.
The choice between compounding growth and monthly payouts depends on whether you're looking for long-term growth or a regular BTC-denominated income from your Bitcoin. Both options invest in the exact same pool of Bitcoin assets, but they handle your payouts and fees differently.
Compounding growth:Your gains are automatically reinvested into the fund, allowing your total Bitcoin balance to potentially grow over time.
Monthly payouts:Your gains are paid out to you every month, while your original Bitcoin holding remains the same.
Note: This option carries a slightly higher fee, and your BTC balance in the Fund is not reduced by the payout mechanism, though the value of your investment remains subject to market risk.
If you choose the monthly payout option, your gains will be deposited directly into your Xapo Bank BTC Savings account.
These payouts are processed for the previous calendar month and are scheduled to be credited to your account by the 20th of the current month. For example, the payout for the full month of May would be scheduled to be received by June 20th, and June's earnings would be scheduled to be received by July 20th.
Yes. While the compounding growth option increases the BTC amount of your holding through reinvestment, the monthly payouts option keeps your principal stable. You will only receive the gains on your investment as a distribution, leaving your original investment untouched unless you decide to redeem it.
Yes. Because this involves a change in the share class of your investment, the process is handled personally. Simply reach out to your dedicated Relationship Manager, who will guide you through the necessary documentation to make the switch seamless.
Your BTC Savings account and the BTC Credit Fund are designed to meet different financial goals, and it's crucial to understand their distinct risk profiles.
BTC Savings Account:This account is designed for low-risk, daily earnings and provides immediate access to your funds. It's important to note that the daily earnings apply to balances up to a maximum of 2 BTC. It offers a straightforward way to earn a return on your Bitcoin with minimal risk.
BTC Credit Fund:This is an investment product that aims for higher returns (targeting 2-4% net annually). By investing in the fund, you are taking on investment risk, which means the value of your investment could go down as well as up. The potential for higher returns comes with this increased risk compared to your BTC Savings account.
Think of it this way: your Savings account is for stable, daily earnings on your everyday Bitcoin holdings, while the Credit Fund is a strategic investment for a portion of your wealth where you are comfortable taking on more risk for the potential of a higher yield.
The monthly payout share class has a slightly higher management fee compared to the compounding growth (accumulation) share class. This is the primary difference in cost.
There are no additional fees for subscriptions (when you invest) or redemptions (when you withdraw your investment) or distributions (when you receive the payouts) for either share class.
Fees are clearly outlined in the fund's documentation to ensure you can make a fully informed decision that aligns with your financial strategy.
Yes. Your fiat deposits are secured up to a threshold. Because Xapo Bank operates as a fully regulated credit institution, eligible fiat deposits are protected up to £120,000 (or the equivalent in US Dollars) by the Gibraltar Deposit Guarantee Scheme (GDGS). This provides you with robust consumer protection even while you earn yield on your balances.
Yes, you should hold a minimum of 20 USD or 0.000365 BTC to begin earning on your savings balances with Xapo. Please note that certain advanced wealth strategies or specialised institutional savings products may have minimum allocation requirements.
Yes, the Annual Percentage Yield (APY) for both our USD and Bitcoin savings products is variable and subject to change. For USD, the rate is often influenced by broader macroeconomic factors, such as changes in global central bank interest rates. For our advanced Bitcoin strategies, yields may adjust based on prevailing market conditions. We are committed to transparency and will always notify members of any adjustments to their earning rates.
Yes, you have immediate access to your standard yield earnings from savings accounts. Because yield on your regular USD and Bitcoin savings is paid out daily directly in BTC to your Bitcoin balance, those funds are instantly liquid. You can immediately spend them using your Xapo Bank debit card, transfer them, or allow them to remain in your balance, where they may continue to benefit from daily yield accrual (subject to prevailing rates) without any restrictions or withdrawal delays.
(Please note that specific advanced wealth products may have defined maturity or payout schedules).
Currently, Xapo Bank does not pay direct yield on stablecoin balances. Our platform is designed to instantly convert incoming stablecoin deposits (like USDC and USDT) directly into US Dollars upon receipt. Once converted, those funds automatically become part of your USD balance, where they can immediately begin earning yield in your dedicated USD Savings account.
