A women named Olivia with brown hair is on camera discussing her experience with YouHodler savings accounts
Make Your Money Work for You

How Olivia Earned 12% interest on USDC and Other Cryptocurrencies

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The banks have spoken. They don’t need us anymore. Do you want proof of that? Just check your interest rate on any “high yield” savings account. These days, “high yield” is something around 1.8% per year, with traditional savings accounts generating around 0% - 1%. The banks spoke and we listened. That’s why clients such as Olivia are moving to the new world of digital finance where interest rates as high as 12% per year are found. You too can make your own story such as this but first, let’s peek behind the curtain and see why traditional banks don’t want our business anymore. 

How do banks set interest rates on savings accounts?


Every financial institution is allowed to set its own interest rates. However, the central bank of the country such as the Federal Reserve or the European Central Bank (ECB) has a large influence on these rates via buying and selling various financial instruments (e.g. bonds). Hence, this enhances the federal funds rate, also known as the rate at which banks charge other banks on overnight loans. The consumer then sees these federal fund rates trick down into their savings accounts rates, credit cards, mortgage rates, auto loan rates, etc. For comparison, in 2021, the Federal Fund rate in the USA is 0.25%. In 2000, it was 6.51%.

In addition to the central bank influence, traditional banks have no motivation to raise interest rates because they don’t need to attract new deposits at the moment. Since many consumers are feeling this lack of interest from their favorite banks, we’re currently witnessing a mass migration to the world of digital finance and financial technology. 

How to earn interest in cryptocurrencies

As Olivia described up above, it’s completely possible to earn 12% or more via cryptocurrency platforms. Olivia uses YouHodler to deposit her USDC stablecoin and earn 12% of compounding interest every year. That’s more than 12x the interest one finds at a local, traditional bank. To get started, the process is easy. Just follow these steps:

  1. Create an account on YouHodler

  2. Buy USDC (or if you already have some, deposit USDC)

  3. Once the deposit is complete, you automatically start generating interest with weekly payments directly to your YouHodler USDC wallet. 

In just three steps, you can start generating a passive income just from cryptocurrency alone. 

Is it safe to keep crypto on these FinTech platforms?

Safety is the number one issue for many people who wish to put their life savings on the line. The fact is, even in a bank, your funds are never 100% safe or even yours for that matter. When you deposit funds in a bank, banks are essentially writing you an “IOU” on your balance sheet, promising to pay you back when it’s time to withdraw. Of course, this doesn’t always happen as we say in the Great Depression or Hyperinflation events where the money becomes absolutely worthless. 

On the topic of cryptocurrency, it’s good to know that you are the sole owner of your digital assets. Yes, storing digital assets in another platform to generate interest indeed requires some trust. However, platforms like YouHodler use only industry best practices when it comes to crypto storage to ensure that 100% of all funds are never susceptible to a hack. They also have pooled crime insurance with Ledger Vault up to $150 million and surely, there will be more partnerships like this in the future to further enhance insurance needs and platform securely. 

Earning interest in cryptocurrency is an easy way to generate a passive income and far superior to any bank interest rate. Just remember to always do your due diligence before depositing funds anywhere and research top security tips to keep your own funds safe since it’s your responsibility.

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Published on
21 April 2021