An interest rate of 7 per cent is a tempting offer for savers frustrated by the pittance earned on bank deposits. A new breed of savings-style accounts, where savers’ cash is put into cryptocurrencies, promises to pay outsized interest rates - but it pays to be careful.
Steve Mickenbecker, Canstar’s group executive financial services, says savers have had no joy in years as interest rates have hit record lows. If the administrator of your crypto savings account lends money to third parties that don’t pay it back, you could lose some or all of your money with little or no recourse, he warns.
Block Earner investors can deposit Australian dollars into their account within minutes, which are then converted into USDC coins, a stablecoin pegged to the US dollar. The DeFi saving platforms then lend the stablecoins out to third-party DeFi lending and borrowing platforms that employ strategies to generate returns on the invested coins.
With Finder Earn, investors deposit Australian dollars into their Finder Wallet in the firm’s app, then convert that into TAUD stablecoins , which are pegged to the Australian dollar, one-for-one.