The highest traditional consumer savings account today returns 1000 percent less than the cost it takes for us to get a loan or make a credit card purchase. A brief read-through of NerdWallet’s 10 Best Savings Account of 2022 reveals that Axos Banking currently takes the lead in the “high yield savings” account with an APY of 0.61%, this means that if you opened an Axos Savings account and put in $5,000, one year later, you would have earned an interest of $30.5 while the purchasing power of your money erodes by over $115 due to a 2.3% increase in inflation as predicted by the Washington Post.
Why you should move away from traditional savings account
If you use banks such as Wells Fargo, CitiGroup, Truist, or Bank of America, you’d been served an even lower rate. The highest “Diamond Honors” group in Bank of America, for example, would only go up to 0.04% which is 100x less than Axos, the highest in traditional finance yield.
If the banks cannot even beat the rate of inflation, why are Americans still putting their money in these savings then? The simple answer is we have been conditioned to accept the system and to believe that this is the only way to save and protect our money. We have been conditioned to fear and to play safe and give up our hard-earned money so that these middleman mechanisms can protect us.
DeFi and the way forward for transparent accounting and higher yields
Thanks to Blockchain technology, today everything that that traditional banks used to do and monopolized can now be done openly and transparently, thus born the era of “DeFi“, or Decentralized Finance, which uses smart-contracts executed by computers to settle and verify transactions that could be verified and trusted by every user on the network. This innovation has allowed for tech-savvy users and investors to earn as much as 20% on their deposits, which is leaps and bounds or thousands of times more than traditional rates.
Despite fear-mongers and doomsayers against DeFi and anything “crypto” related, there are some well-respected DeFi platforms that offer decent returns and with some decent level of insurance. For me, personally, Nexo is my go-to for the high rates DeFi platform. A Google search of “what is nexo finance”, will bring up its Twitter tagline, which describes itself as “The leading regulated institution for digital assets, pioneer of the 1st Instant Crypto Credit Lines™ and the high-yield Earn Crypto Interest product.”
Full disclaimer, I am not paid or affiliated with Nexo, I am just a fan and an enthusiast of the DeFi space that it is leading. I have also used and tested other platforms like Celcius, BlockFi, Vauld, Voyager, Crypto, etc. Nexo is best in many aspects, and being a legally regulated institution is available in over 200 jurisdictions, has over $12 Billion dollars in assets management, and is pool insured up to $375 million by BitGo and Ledger.
Yes, you can limit crypto risks and still earn with fiat (dollars) in DeFi space
But forget about the technicalities, how much can you earn on USD savings alone! That’s the real reason you’re here reading this article. Well, for a “safe” conscious person, you can earn up to 12% by keeping your savings in US Dollars (USD), British Pounds (GBP), or EUROs. You can also convert these fiats to stable coins and earn the same rate, but also have more flexibility in transferring and using the coins to trade other cryptocurrencies on Nexo or in other platforms.
To unlock those high interests, you will need to keep 10% of your balance in the platform’s Nexo token or coin. Since this is what it uses for governance, its utility is guaranteed, and as the company grows its values will also grow, think simply as investing in this company’s stock.
Borrowing with 0% interests no tax and no credit score impact
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A few other great features that I really enjoy are the instant withdrawals and zero-fee transfers, both ways, to and from your old traditional bank. One of the best advantages I have to say is the zero interest rate loans against my own money, yes you can get a 0% loan rate depending on your collateral/loan value ratio. Bye byes are the times of 24%+ loan interests!
I have been waiting to get the Nexo card for while, if you are a traveler or have homes in multiple worlds, imagine using one card and not having to deal with exchange fees since the card allows you to use your funds directly in the local currency, without charge to you.
Breaking the cycle together and sharing your experience with friends
Here are some great selling points below taken directly from their website. If you are fed up with your traditional banking rates and fees and find this review helpful, please sign up with my referral link so I can move up closer to the waiting list to get the Nexo Card!
As always, good luck, happy investing and I hope you are one step closer to ditching the arcane cheating institution with low yield, yet big unaffordable loan interests!
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