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How Does a BlockFi Interest Account Work?

Published 17 September, 2020

    Many crypto investors store their digital assets on exchanges or in cold storage for long-term safe keeping. However, this strategy doesn’t help them grow their investment holdings or build overall wealth. The BlockFi Interest Account enables individuals and companies that own cryptoassets to earn interest in crypto on their crypto held at BlockFi. Signing up for an account takes less than 2 minutes and clients can start earning interest on the crypto of their choosing in the same day.

    How to Earn Interest on Crypto

    The crypto industry is in growth mode. Businesses are building and investors are looking for ways to accumulate more capital. BlockFi Interest Account clients can deposit their crypto and earn interest. Paid out at the beginning of every month, the interest earned by account holders compounds, increasing the annual yield for our clients. This is an easy way for crypto investors to earn bitcoin while they HODL.

    For example (this example does not reflect current rates): With 6% compound interest, a BlockFi Interest Account client who deposits 1 Bitcoin, on February 28 will have an updated balance of 1.005 BTC at the end of March. This process repeats month over month until the client decides to withdraw their funds.

    This chart is just an example and does not reflect current rates.

    If the interest rate and deposited crypto’s price remain unchanged, the client who deposits 1 Bitcoin on February 28, 2019 will see their overall holdings increase to a value of 1.062 BTC (+6.2%) over a 12 month period.

    If you add additional crypto to your BlockFi Interest Account, your interest will compound on the new balance. For example, let’s say on May 1st you deposit 1 BTC and then on May 15th you deposit an additional 1 BTC, bringing your total balance to 2 BTC. From May 1st – May 15th, you will earn compounding interest on the original deposit of 1 BTC. That will amount to 0.0025 BTC. On May 16th you will start earning compound interest on your new balance of 2 BTC plus any interest earned in the first half of the month. Interest earned in the last 16 days of May amount to 0.0053 BTC. On June 1st, you will have earned 0.0078 BTC in interest, which will be added to the principal balance. This makes your new total balance 2.0078 BTC, which will continue to accrue daily.

    In the case that you’d like your compound interest to be paid out in a different asset than the one you deposited, we offer Interest Payment Flex. With Flex, you can hold crypto in your BIA and get all of your interest paid out in the currency of your choosing. This allows you to easily diversify your assets without having to buy new crypto.

    BlockFi is dedicated to providing cryptoasset holders products and services available in the traditional financial world in the crypto ecosystem. We started with our crypto-to-USD loans and continue expanding into financial services that focus on helping people manage their digital assets and grow their net worth. The BlockFi Interest account provides crypto holders with an easy way to earn bitcoin.

    What Does BlockFi Do with Account Assets?

    BlockFi generates interest on assets held in Interest Accounts by lending them to trusted institutional and corporate borrowers. To ensure loan performance, BlockFi typically lends crypto on overcollateralized terms (similar to the structure of our crypto-backed loans). Furthermore, BlockFi’s automated risk management system monitors positions 24/7, leveraging the same trusted risk management system used with BlockFi’s crypto-backed loans.  BlockFi has the ability to terminate a borrow in a timely fashion and also manages reserve balances to facilitate client withdrawals from Interest Accounts.

    BlockFi client funds are structured to be at the top of the capital stack, senior to BlockFi equity and BlockFi employee capital. This means BlockFi’s business and client incentives are aligned and BlockFi would take a loss before any client would. BlockFi implements very thoughtful risk management practices and technology to mitigate the risk, but you should not view the BlockFi Interest Account as a savings account or brokerage account with FDIC or SIPC insurance.

    BlockFi Interest Account Terms and Conditions

    The BlockFi Interest Account is available to clients worldwide, with a few exceptions. For example, BlockFi is not available to clients located in sanctioned or watchlist countries. Availability can be viewed here.

    The BlockFi Interest Account does not require a minimum deposit balance to be eligible to earn interest. Withdrawals are often pushed-through same-day, but BlockFi reserves up to 7 days to process a client fund withdrawal. These guidelines will change and improve as the Interest Account product grows and client feedback is received.

    Sign Up for a BlockFi Interest Account

    Signing up for a BlockFi Interest Account takes as few as two minutes. Visit to begin. Once you input your contact information, you’ll be asked to go through BlockFi’s KYC process. After that’s completed, you will receive a notification from BlockFi via email to confirm your new crypto interest-earning account.

    Once you login to the account, navigate to the Earn Interest tab. There, you will be able to view the available deposit collateral types and the amount of collateral deposited. After clicking “Deposit,” you will be presented with a unique wallet address, hosted by our institutional custodians.

    If you have any questions about the BlockFi Interest Account or crypto-backed loans, feel free to reach out to our team at We love hearing from you.

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    Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
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