BlockFi Interest Rates October 2021 Update (up to 8.25% APY)

BlockFi Interest Account (BIA) rates are changing! You’ll now earn up to an 8.00% APY interest rate. See what you can earn by holding your crypto at BlockFi!

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Earning Interest with BlockFi

BlockFi allows you to earn interest on all your cryptocurrency holdings through their BlockFi Interest Account (BIA).

I was originally interested in BlockFi because they offer new users a crypto bonus of up to $250 BTC for joining. I was planning to close my account once the bonus posted.

Not only did I keep the account open, I transferred $50,000 into it when I found out that I can earn an 8.60% interest rate. It’s like a supercharged savings account for a portion of my available cash.

If you’re interested, I wrote an entire post about my experience earning interest with BlockFi.

BlockFi Interest Rates

BlockFi is updating its rates and tiers starting on September 1, 2021 for holdings in the BlockFi Interest Account (BIA). This will affect the following cryptocurrencies:

  • Bitcoin (BTC)
  • Ether (ETH)
  • Litecoin (LTC)
  • Chainlink (LINK)
  • PAX Gold (PAXG)
  • Basic Attention Token (BAT)
  • Uniswap (UNI)
  • Stablecoins (BUSD, DAI, GUSD, PAX, USDC and USDT)

BlockFi continually adjusts rates based on market dynamics. Their goal is to properly manage risks while maximizing earning opportunities for BlockFi Interest Account customers.

That means that sometimes it goes down a little – and that’s okay. I know BlockFi is trying to build a sustainable business so we all win in the end. Other times, they bump up the rates and we earn more on our crypto holdings (wahoo!).

I’m happy to report that this interest rate update is going to benefit the majority of customers.

Tier 1 rates for all cryptocurrencies are increasing while the tier amounts will also be adjusted. According to BlockFi, close to 75% of customers will see an increase in their APY.

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BlockFi Interest Account Rates Update

BlockFi will make the following adjustments starting October 1, 2021:

Stablecoin Updates

The following rate table applies to all USD-backed stablecoins including BUSD, DAI, GUSD, PAX, USDC, and USDT (USDT is only available for international customers):

CURRENCYNEW AMOUNTNEW APYFORMER AMOUNTFORMER APY
Tier 1  Stablecoinsup to 40,0008.25%up to 50,0007.5%
Tier 2  Stablecoins>40,000 & above7%>50,000 & above5%

Bitcoin Updates

CURRENCYNEW AMOUNTNEW APYFORMER AMOUNTFORMER APY
Tier 1 BTCup to 0.10 BTC4.5%up to 0.25 BTC4%
Tier 2 BTC>0.10 to 0.35 BTC1.0%>0.25 to 5 BTC1.5%
Tier 3 BTC>0.35 BTC & above0.1%>5 BTC & above0.25%

Ether Updates

CURRENCYNEW AMOUNTNEW APYFORMER AMOUNTFORMER APY
Tier 1 ETHup to 1.5 ETH5%up to 5 ETH4%
Tier 2 ETH>1.5 ETH to 50 ETH1.5%>5 to 50 ETH1.5%
Tier 3 ETH>50 ETH & above0.25%>50 ETH & above0.25%

Litecoin Updates

CURRENCYNEW AMOUNTNEW APYFORMER AMOUNTFORMER APY
Tier 1 LTCup to 20 LTC4.75%up to 100 LTC4.5%
Tier 2 LTC>20 to 100 LTC1%>100 LTC & above2%
Tier 3 LTC>100 LTC & above0.1%N/AN/A

Chainlink Updates

CURRENCYNEW AMOUNTNEW APYFORMER AMOUNTFORMER APY
Tier 1 LINKup to 100 LINK3.5%up to 750 LINK3%
Tier 2 LINK>100 to 500 LINK0.5%>750 LINK & above0.5%
Tier 3 LINK>500 LINK & above0.1%N/AN/A

PAX Gold Updates

CURRENCYNEW AMOUNTNEW APYFORMER AMOUNTFORMER APY
Tier 1 PAXGup to 1.5 PAXG3.25%up to 5 PAXG2%
Tier 2 PAXG>1.5 to 5 PAXG0.2%>5 PAXG & above0.5%
Tier 3 PAXG>5 PAXG & above0.1%N/AN/A

Basic Attention Token Updates

CURRENCYNEW AMOUNTNEW APYFORMER AMOUNTFORMER APY
Tier 1 BATup to 4,000 BAT3.25%up to 25,0000 BAT1.5%
Tier 2 BAT>4,000 to 20,000 BAT0.2%>25,000 BAT & above0.5%
Tier 3 BAT>20,000 BAT & above0.1%N/AN/A

Uniswap Updates

CURRENCYNEW AMOUNTNEW APYFORMER AMOUNTFORMER APY
Tier 1 UNIup to 100 UNI3.25%up to 750 UNI1.6%
Tier 2 UNI>100 to 500 UNI0.2%>750 UNI & above0.5%
Tier 3 UNI>500 UNI & above0.1%N/AN/A

The Bottom Line

Overall, this is a positive change – although I will make some tweaks on my end.

Currently, I have $50,000 in GUSD (a stablecoin). You can see from the stablecoin interest chart that I was earning 7.50% APY on my entire GUSD holdings:

CURRENCYNEW AMOUNTNEW APYFORMER AMOUNTFORMER APY
Tier 1  Stablecoinsup to 40,0008.25%up to 50,0007.5%
Tier 2  Stablecoins>40,000 & above7%>50,000 & above5%

Now I’ll be earning 8.25% APY which is awesome, but the maximum amount earned at that rate is $40,000 before it drops to 7.00% APY.

So what am I going to do?

I’ll withdraw $10,000 of that so that all of my GUSD will earn at the full Tier 1 rate of 8.25%. Then, I’ll create a new BlockFi account for my wife and deposit the $10,000 I took out from my account.

She’ll get the BlockFi sign-up bonus and we’ll continue to earn the full 8.25% APY interest rate too!

Maximizing your finances – that’s The Money Ninja way 🙂

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