Introducing the Luno BTC Savings Wallet

Team Luno
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3 minute read

They say nothing in life is free. They say money doesn’t grow on trees.

 

They’re wrong.

 

Presenting the new Luno BTC Savings Wallet. Simply move your BTC in and you’ll earn a targeted rate of 4%* interest per annum.

 

 

It’s that easy. Your earnings are then paid in bitcoin directly into your Savings Wallet on the first day of each month. You can either choose to withdraw them straight away, or leave your earnings in your Savings Wallet to compound and grow exponentially. So, say you move 1 BTC into your Savings Wallet and choose to leave your earnings to grow, two years later you’ll have 1.08314 BTC.

 

 

There are no fixed terms, no admin fees, and your funds can be moved into your normal wallet whenever you need.** Please note that the Luno BTC Savings Wallet is not currently available in Malaysia. We're currently working to change this and will let you know if the situation changes.

 

What are you waiting for? Go to the Wallets section of your Luno App or on the Luno website, tap Add New Wallet, and follow the instructions. Don’t just HODL – start earning passive income on your idle bitcoin balance today and make your crypto work for you.

 

The Luno BTC Savings Wallet is available through the Luno web platform and the latest version of the Luno App (version 7.1.0). To make sure you have the most up-to-date version of the app, please check the bottom of your profile page. If you do have an older version, please upgrade your app to access the Savings Wallet.

 

Having problems getting your Savings Wallet? Check out this Help Centre article to get you started.

 

*Please note that interest rates, withdrawal limits, and fees are subject to change. Interest rate may vary
**Please allow up to 7 days for withdrawal

 

A better financial system

 

The need for a bitcoin savings account has been brought into sharp focus over the past year, in large part due to the economic uncertainty created by COVID-19. Countries across the world have slashed interest rates, with some even introducing negative rates. This means savers are currently facing a dearth of options.

 

In a survey carried out by Luno earlier this year, more than a third of respondents (35%) said they’re not currently earning any interest on their cash savings at all. More than half of respondents (54%) further added that they’re not earning interest through their current or savings bank account.

 

In a time of economic uncertainty, a BTC Savings Wallet is a safe alternative for anyone looking to make meaningful savings on their money. Almost 95% of our customers have said they want to earn interest on their bitcoin, and because of the nature of Bitcoin, we're able to offer a much higher interest rate than traditional savings accounts.

 

The Savings Wallet arrives at a time when traditional investments have shown vulnerability at a time of crisis. There has never been a better time to utilise a currency that doesn't rely on a healthy economy to determine its value.

 

FAQS

 

Why is the interest only targeted at 4%?

 

The interest you’ll earn on the funds in your BTC Savings Wallet is targeted at 4%, but this number will vary according to market conditions. This means it could be less than 4% or it could be more than 4%. What do we mean by market conditions? Good question! The funds transferred into your Savings Wallet are lent to our chosen lending partner to generate a return. Market conditions (supply vs. demand) influence the percentage return that they generate.

 

Is my money secure?

 

Luno has partnered with Genesis to bring you this savings wallet. Genesis are another company operating under the Digital Currency Group umbrella. Genesis are the world’s largest lender of digital assets and helps clients increase capital efficiency and access alternative liquidity for hedging, speculation, institutional market-making and working capital needs. They've been in operation since 2013 and are one of the most respected names in the industry.

 

While we’ve taken every precaution to choose the right lending partner, there are some risks involved.

 

You should be aware that any funds transferred into your Savings Wallet will be lent to our chosen lending partner. This is in order for them to generate a return, which is how interest is earned. Your savings wallet is not a traditional fiat currency bank account, and cryptocurrency accounts are not covered by deposit protection insurance.

 

Our lending partner collateralises their loans (ie. they take security), and we’re confident in the robustness of their lending platform. Luno doesn't, however, guarantee the funds held in your Luno Savings Wallet, and you accordingly agree to take on the risk of counterparty default by utilising the Savings Wallet. Please carefully read the Savings Wallet terms so that you're fully informed of any risks involved in using the Savings Wallet product. Learn more about Genesis and their risk disclosures.

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Team Luno

On our way to the moon, we write about all things crypto. And don’t forget we’re humans too. Our blog conveys the views of Luno and the many unique opinions and characters within our team. We’ll never provide you with financial advice, and we urge you to conduct your own research before purchasing or trading any cryptocurrencies. It’s a brave new world out there, and the market can be volatile at times, so never trade with funds you can’t afford to lose. Want to let us know how much you love our blog? Tweet us @lunomoney.

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