Earn passive income with Savings (on Binance)

By May 12, 2022DeFi
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Start simple and secure earning from popular coins…,

Photo: Binance

Rising inflation not only affects the economy, it also dents your finances (eroding purchasing power), especially if you fail to (save and) invest right. To maintain the value of your money (amidst plummeting bank interest rates), you will need to be earning interest on it.

Investing sustainably requires saving systematically. Do remember that it is on your financial decisions that your financial freedom depends, wherein savings and investing are crucial. If the decentralized finance (DeFi) world and cryptocurrencies fascinate you, Binance offers alluring savings options (via Binance Earn).

The world’s largest cryptocurrency exchange Binance’s Earn function has various Savings options worth your time, attention, and due consideration. This article aims to present to you the Binance Earn (Savings) product suite. The objective is to assist you in discovering a fitting passive income earning route from your cryptocurrency savings account. The focus is to passively (and safely) multiply your year-on-year (y-o-y) gains, boosting your real income.

But first you need to register your Binance account and finish the Identity Verification process. Then access the Binance Earn section for more details.

What is Binance Savings?

Photo: Binance

Binance Earn (Savings) is a simple way to Lend and Earn. It offers stable earnings with zero fees. In it you earn popular coins via competitive interest rates by staking BTC, BNB, etc. Binance Savings is a financial product that allows you to profit from competitive interest rates. Upon transferring your cryptocurrencies to Binance Savings wallet, you start earning decent profits. What’s interesting is that the said deposit is redeemable whenever you wish to.

Earlier referred to as Binance Lending, the product in question got its rebranding done to Binance Savings in April 2020. At the same time, Flexible Deposits and Fixed Deposits also got renamed to Flexible Savings and Locked Savings, respectively. Accessible under the “Savings’’ section of the “Earn” tab in the main menu, Binance Savings offers Flexible and Locked Savings products.

In the former, there are no conditions of lockups or penalties on withdrawals. In the latter, higher interest rates are on offer, but with a durational lockup. Locked Staking investors get closely associated with the concerned blockchain community, whilst multiplying their cryptocurrency balance. Binance Earn Savings also lets you earn staking rewards on the blockchains you love.

Although, Binance Earn (cryptocurrency savings account) still differs from a regular savings (bank) account. In it you earn interest on the cryptocurrencies you deposit, either with flexibility or under a lockup, with respectively differing returns.

How does Savings work?

Binance Earn (Savings) involves direct locking of coins on the cryptocurrency exchange. These coins are then used by the exchange for generating savers’ rewards.

In Binance Earn (Savings), you can select from dozens of available cryptocurrency financial products on the platform. You can also transfer your cryptocurrency into either of your solutions of interest (as your funds multiply). You can also cash out your profits easily. Just transfer a preferred amount of cryptocurrency into a Binance Earn product, and reap profits.

Ensuring enough wallet balance is a must to fully benefit from Binance Earn (Savings). The beauty of Binance Earn (Savings) is that in it the users can pre-gauge the risks and rewards. Binance Savings adjusts to the supported assets, interest rates, individual limits, and total subscription limits, per market pulse and their internal risk management.

The primary components of Binance Savings are:

  1. Flexible Savings
Photo: Binance

Flexible Savings is a flexible-to-transfer and a safe-to-earn-from financial product. It can be subscribed to and redeemed whenever you deem fit. In it, the crediting of funds happens in real-time. Flexible Savings’ interest calculation begins from the day following the subscription. There is a choice of fast or standard redemption on the subscription day.

2. Locked Savings

Locked Savings are flexible deposits, earning you higher profits. In it, locking of your digital assets on a Proof of Stake (PoS) blockchain takes place. Apart from contributing to the network, it also makes available staking rewards. Binance Locked Staking offers a simple avenue for HODL’ers to stake and earn rewards. Locked and Flexible Savings need a minimum amount of cryptocurrency. Locked savings lets you transfer the coins to your flexible savings account prior to the end of its locked duration. Just that in that case interest accrued, if any, would be lost. Ensure you won’t need to access the locked (savings) coins for (at least) its locked duration. Locked Staking lets users reap additional staking rewards over and above the regular rewards earned via Proof of Stake assets. The lock-up rates and the interest rates would differ in accordance with the asset type. In general, terms are of 7 and 90 days.

3. Auto-Invest

Photo: Binance

Auto-Invest facilitates assets’ growth on autopilot. It is a form of automated buying wherein you can set and forget your cryptocurrencies. You can accumulate cryptocurrencies on autopilot, whilst eliminating any guessings out of the market timing. Invest in cryptocurrency a predetermined amount, simply select a coin of choice to invest in, agree on an investment amount, and activate a recurring plan. Auto-Invest lets you earn a passive income on a daily basis via Flexible Savings. You can then redeem the feeds as and when you wish. Diversifying your cryptocurrency holdings across the 27 available coins, Auto-Invest essentially allows elevating the coverage.

4. BNB Vault

Photo: Binance

BNB Vault is the one-click-to-earn product with BNB multi-benefits. A BNB yield aggregator, the BNB Vault combines Flexible Savings, BNB DeFi Staking, and Launchpool, for finest APYs (up to 20%). The Savings, Launchpool, and Other rewards get distributed to the Spot wallet. The BNB Vault basically acts as a flexible yield aggregator wherein you earn combined returns on your BNB.

Learn how to use Binance Locked Savings.

Learn how to use Binance Flexible Savings.

What are the benefits of Savings compared to traditional banks?

  1. The limit offered by Binance Savings is pretty high (as various cryptocurrencies have US$50,000,000-plus limits). The deposit limits range from US$10 million to US$150 million.
  2. Deposits, withdrawals, and interests don’t attract any fees on the platform.
  3. The platform is newbie-friendly (for those who use the auto-transfer feature to automate interest earning from their cryptocurrencies).
  4. Users can select to invest in either the Locked Savings or the Flexible Savings per their needs.
  5. Auto-transfer feature automates the transfer of funds from ‘Spot Account’ to Flexible Savings account.
  6. Binance supports the highest number of cryptocurrency assets as against other exchanges.
  7. Binance is duly committed to increase its product portfolio (e.g. two fresh products are Activities and Locked Staking).
  8. Binance Savings is the easiest way to earn passive income.
  9. There is almost a zero risk of loss.
  10. Flexible Savings can be instantly redeemed.
  11. Close to 170 tokens are available in Binance Earn (Savings).

What special high-yield offers are available on Flexible & Locked Savings?

The Flexible and Locked Savings offer some of the most alluring high-yields anywhere in the market.

The coins offering the finest Locked Savings yields are listed below:

  • AXS: 70% / 15 days
  • CAKE: 50% / 15 days
  • DREP: 35% / 30 days
  • BUSD / USDT: 9% / 60 days
  • DOCK: 25% / 15 days
  • JASMY: 35% / 60 days

The coins offering the finest Flexible Savings yields are listed below:

  • AXS: 20%
  • CAKE: 12%
  • BUSD: 10%
  • WAVES: 10%
  • APE: 10%
  • LUNA: 6%
  • MATIC: 6%

But, there’s more. To woo the Binance Savings newbie users, there is a limited welcome bonus made available at regular intervals. This features welcome bonuses, such as the recently announced 20% APY with GMT.

Start investing today with Flexible Savings or Locked Savings, today.

But first, register your free Binance account, if you haven’t done so yet.

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