BlockFi Interest Account Phase-Out
BlockFi used to offer Interest Accounts, which were similar to savings accounts but with a high yield on GUSD stablecoins. These were shut down in February 2022 as part of an SEC settlement. Existing accounts will continue to earn interest, but funds can no longer be transferred into Interest Accounts.
High-Interest Account: Gemini Earn
Gemini Earn is a savings account analogue that earns a high interest rate.
The account can be funded via ACH from your normal bank account, but there is a catch: the first account funding needs to be a wire transfer. Most banks charge ~$25 for outgoing wire transfers. Subsequent fundings can be ACH, but they have to come from the same account you sent in a wire transfer from initially.
- Gemini Earn accounts are not FDIC insured.
- Gemini may see similar scrutiny to BlockFi, probably very soon. Or if their lawyers get their way, shut down the offer before receiving a massive fine.
- If Gemini / Gemini Earn shuts down, there is a small chance of your money disappearing.