Get 150-Times More Interest on Your Savings (Best High Interest Savings Account 2021)

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Learn how to stop losing money on your savings and how to get the best high interest savings account this year.

Hey Bow Tie Nation, Joseph Hogue here and a video today that is more of a warning than anything. Interest rates on bank savings accounts have fallen to just 0.05%. That’s one-twentieth of what it was just last year and a fraction of what you used to earn on your savings Just a few years ago, you could find high yield savings accounts with three and four percent interest. Now, it’s basically zero.

And it could be just the beginning of an era where you PAY the banks to hold your money. Interest rates in Europe have turned negative, savers have to pay the banks for a savings account!

In fact, you’re already losing money on every dollar you have in a savings account. Because the interest rate on savings is below inflation, you’re losing almost 2.5% on your money every single year. For every $100 you have in savings, you’ll lose $12 of it every five years.

How to Get the Best High Interest Savings Account This Year

In this video, I’ll show you not only how to stop losing money on your savings but how to make up to 150-times more on a high interest savings account. I’ll explain how to set it up, why it’s not too good to be true and take you inside the best high yield savings account you’ll find. Stick around and at the end of the video, I’ll also show you how to get a bonus return on your savings.

To understand what’s going on and why it could get worse, know that when the Federal Reserve wants to juice the economy, it lowers interest rates. Here you see, just in the last two years, the central bank’s base rate has fallen off a cliff, from almost 2.5% to nothing. The thinking goes, the less people are making on their savings, the less likely they are to save. The government is trying to force you to spend that money because why hold it in a savings account if you’re going to lose money.

So Chair Powell and the Fed has turned on the printing machine and held rates near zero. That’s dropped the bank interest rate on savings down to 0.05% and even high interest online savings are paying one percent or less.

The average household has $5,300 in savings and another $2,000 in emergency savings. Even with inflation as low as 2.5%, that means you’re losing $178 a year. That’s nearly $200 a year you lose because the average savings interest rate is below inflation.

And it is about to get worse. Data from the Fed shows consumer inflation jumped to 5% last month. You are now losing 5% of your money every year it sits in savings. On that average household savings balance, that’s $361 lost every year.

There is a solution but it’s not one most people understand. In fact, you’re probably going to think it’s too good to be true so let me explain.

Huge Demand for Stablecoins

There is a huge demand for stablecoins right now from money managers, institutional funds and banks. Now stablecoins are a type of cryptocurrency that locks its value to the dollar. It does this by holding a reserve of dollars so the price of the stablecoin stays at that constant value of $1 each. For example, the USD coin or USDC, is a stablecoin backed dollar-for-dollar in a vault account.

And to a money nerd like myself, the way these are being used in business and finance is like watching fireworks on the fourth of July!

Because of the speed and low cost transactions, stablecoins are being used in international money transfers and to close contracts. Money managers are also using them in arbitrage trading, borrowing in stablecoins to buy other cryptocurrencies, then buying and selling on different crypto platforms to make a risk-free profit.

All this has created a huge demand for stablecoins lending and the cryptocurrency platforms are able to offer interest rates on your deposits that are 100-times and more what you earn in a bank savings account. I’m going to show you those rates and this is something you have to see. You open an account just like any online bank account, transfer your savings and keep it in stablecoins and you’re going to earn that high yield interest every day it’s in there.

Here you see the interest rates offered on the BlockFi platform, the one I use. I use the platform to earn interest on my bitcoin and Ethereum but if you scroll down, you see the rates offered on stablecoins like the USDC, Gemini USD, PAX and USDT. Interest rates as high as 7.5% on your money!

Which I know, it seems too good to be true. Like I feel like more people would sign up if they only offered 4% interest because you’d be like, ‘Yeah, that makes sense.” But let me explain how they can do this and how it works.

BlockFi is a cryptocurrency platform where you can buy, sell and trade coins like bitcoin, Ethereum and stablecoins. There are no fees to buy or store your coins on BlockFi because that’s not how it makes money. BlockFi lends out crypto held on its platform to those money managers and traders with that demand for it in finance and clearing.  In fact, I’m going to leave a link to BlockFi in the description below for a special interest rate boost on your savings.

BlockFi is able to earn an interest rate on that lending and shares some of that with you for letting it lend out your stablecoins. The platform requires collateral from its borrowers and sets loan-to-value rates that make sure even if a borrower gets into trouble, it’s still going to be able to pay back that loan. BlockFi also keeps a portion of its assets with third parties like Gemini and Fidelity as well as hedging some of its risk so it can be sure to pay all the interest owed to account holders.

I know this is a completely new idea in savings and the first thing you’re wondering is, Is BlockFi safe?

Understand that BlockFi is not a bank, so the money you have on the platform isn’t FDIC insured like with a regular savings account. It does follow regulations set by the federal government and the states though. In fact, it’s one of the few cryptocurrency platforms based in the United States. It uses top-level online security and is regulated by the New York Department of Financial Services.

I use the USDC for my stablecoin savings though they’re all pretty much the same because of that peg to the dollar. The USD is the eighth largest cryptocurrency by market cap with almost $26 billion in coins and you can see the power here in its volume. Even though it’s only the eighth largest, its two billion coins volume makes it the sixth largest by volume because of that demand.

How to Set Up a BlockFi Account

Setting up an account is almost comical how easy it is. In fact, it’s probably going to take me longer to explain it than it actually did to set one up.

BlockFi allows you to transfer in crypto or other coins from another platform or deposit directly from your bank account.

You start with your first and last name then verifying an email address and choosing a password. You can set up an individual account or one for your business and then you’ll pick your country.

And yeah, it sucks that crypto platforms are getting less anonymous, asking for some of this information but it’s still a lot more anonymous than setting up an investing account.

Next you’ll put in your address, phone number, date of birth and the source of your funds. That’s it. You verify your account with a text message to your phone and you’re all set up in less than the time it takes to call up your bank and tell them to shove their 0% interest rate.

Once you’re set up, it’s easy to earn that high interest on your savings. You can deposit directly from your bank account and buy stablecoins with the money. This turns it into like a digital savings because those stablecoins are going to keep their value at $1 each. You’ll earn interest every day you have money in the account and BlockFi provides an easy calculator to show you exactly how much you’ll earn. On that average household savings balance of $5,300 you can earn more than $560 a year and over five thousand over a decade.

Even better though, right now you can get a bonus interest rate on your stablecoins if you sign up for BlockFi using the link I’ll leave in the description below. Because that demand is so high, BlockFi is offering a bonus 1.4% on your stablecoin balance through the end of July. That’s an extra $74 annually on that average balance versus the $2.65 in interest you’d earn in a regular bank account. Seventy-four dollars or two dollars…the choice is yours!

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