A bank deposit is currently up to 1% per annum ... and only by meeting the conditions of the promotion, depositing money for a specified period and only up to a certain amount. It seems that the times when you could live on fortune interest on your bank account are gone forever. Inflation eats savings several times faster than interest on the deposit is paid. So what to do? We will present the NEXO deposit.
Also check: The best deposits - 10% per year in DeFi
What is NEXO?
We pay against our pledge bitcoins or other cryptocurrencies and we take a loan with an attractive interest rate. This service is used by digital miners who do not want to sell the mined bitcoins at the moment, because their price is too low in the short term and electricity bills have to be paid.
In addition, taking loans instead of selling cryptocurrencies is a smart way to bypass the capital gains tax (currently 19% in Poland) or to optimize tax in a given tax period.
In addition, NEXO offers attractive deposits, which we will discuss below.
If you want to know more about the NEXO project itself, read on our review available here.
The interest rate on the NEXO deposit
NEXO offers deposits in traditional fiat currencies.
We can pay by ordinary bank transfer EUR (euro) or GBP (British Pound). We get for keeping them on our account 8% per annum with daily interest capitalization! Thanks to this, the effective interest rate is up to 8,3% per annum, as interest is also charged.
The same interest rate applies USDwhich, however, we cannot pay by traditional bank transfer. We need to do this using cryptocurrencies, one of the stable coins with an exchange rate corresponding to the US dollar, e.g. TUSD (True USD), USDT (Tether), USDC, PAX, or DAI.
However, this is not the end. The interest rate on a NEXO deposit can be even higher by 20%. The condition is that you have NEXO project tokens on your account. Their current value must be equal to or higher than 10% of the value of all our other deposits.
If we want to open a EUR 1000 deposit on 10% annually we need to have NEXO tokens worth more than 100 euro on our account of the NEXO platform. Remember, however, that the NEXO price is changing dynamically (as it is on the cryptocurrency exchange). If the value of our NEXO drops below the required threshold of 10% of the value of deposits, the interest rate on deposits will automatically drop to the standard 8%.
Purchased at an attractive NEXO rate, it can be a good investment in itself as its holders are entitled to a dividend that is regularly paid by the company. NEXO shares 30% of its income with NEXO token holders.
In addition to deposits in traditional currencies and the corresponding tokens, NEXO also offers deposits for holders of cryptocurrencies. We can deposit one of several major cryptocurrencies such as bitcoin, ethereum, litecoin or BNB and earn on the deposit 4% or 5% annually (with NEXO tokens).
… Or maybe an investment with the competition?
Diversification is essential. It can also be used in this case, not only for a NEXO deposit, but also by using other, competitive services offering deposits with attractive interest rates.
An overview of the current offer, along with information about the annual interest rate, is presented in this article.