TLDR
- Coinbase has launched a new savings account in the UK offering 3.75% interest.
- The savings account is fully protected under the UK’s Financial Services Compensation Scheme.
- Interest is calculated daily and paid out once it reaches a minimum of ÂŁ0.01.
- There are no minimum deposit requirements or lock-in periods for the savings account.
- Customers can withdraw funds instantly without losing previously earned interest.
Coinbase has introduced a new savings account for users in the UK, offering a 3.75% Annual Equivalent Rate (AER). The account is designed to provide a low-risk option for savers who seek a regulated interest rate with full deposit protection. Coinbase aims to strengthen its presence in the UK financial market by offering this new product.
FSCS Protection and Traditional Banking Features
The new savings account is backed by the UK’s Financial Services Compensation Scheme (FSCS). This means funds are protected up to £85,000, just like in traditional UK banks. Coinbase has partnered with ClearBank to ensure the safety of customer deposits, providing users with the same level of protection as mainstream banking products.
Interest is calculated daily at a variable 3.75% AER. Users will receive payouts once accrued interest reaches a minimum of ÂŁ0.01. There are no minimum deposit requirements or lock-in periods for this savings product.
Coinbase’s savings account does not tie users to crypto assets or market fluctuations. The account functions like a traditional UK savings product, making it appealing to users who may not want exposure to crypto market risks. There are no barriers such as minimum deposit requirements or lock-in periods.
Customers can withdraw funds at any time, with interest ceasing only on the day of withdrawal. However, previously earned interest remains intact. This feature makes the savings account highly flexible compared to traditional financial products.
Coinbase Bridges Traditional and Digital Finance in UK
Coinbase has worked to expand its services in the UK, which is now its largest market outside the United States. The company has secured registration with the Financial Conduct Authority (FCA) as a Virtual Asset Service Provider. This allows Coinbase to offer a range of regulated services in the UK.
Despite facing regulatory challenges in the past, including penalties for deficiencies in transaction monitoring, Coinbase claims it has addressed these issues. The company continues to focus on improving its compliance framework in the UK.
With this new savings account, Coinbase aims to become a comprehensive financial platform for UK users. This product complements Coinbase’s existing offerings, such as the Coinbase Card and access to digital assets.
By offering FSCS protection and a competitive interest rate, Coinbase is positioning its savings account as a safer alternative for users who are wary of crypto market volatility. This product highlights Coinbase’s strategy to bridge traditional finance with digital assets in a regulated environment.
Coinbase’s move into traditional savings products reflects its broader plan to integrate both traditional and decentralized finance tools for its users.
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