Coinbase UK Savings Account: 3.75% AER & FSCS Protection
Coinbase has introduced its first fiat savings product for UK customers, the Coinbase UK Savings Account, offering a competitive 3.75% AER on GBP deposits up to £85,000 with FSCS protection through ClearBank’s FCA-regulated accounts. Interest compounds daily and is credited weekly, with no minimum balance or lock-in period. This launch follows similar stablecoin yield offerings and positions Coinbase ahead of UK banks offering lower rates. By merging bank-grade insurance with crypto-platform yields, Coinbase aims to attract cautious retail investors, enhance its fiat on-ramp, and pressure mid-tier banks to improve savings rates.
Bullish
This fiat savings launch is bullish for the broader crypto market, as it enhances fiat on-ramp and brings significant retail deposits onto a crypto platform. In the short term, the product may attract up to 5% of UK retail savings into crypto, boosting platform liquidity and trading volumes. Over the long term, by integrating bank-grade protection with attractive yields, Coinbase lowers entry barriers, potentially driving greater BTC and ETH adoption and supporting price stability. Traders may view this development as a catalyst for increased demand and market confidence.