Linus Review 2022: Earn More Interest On Your Cash

Important Note: Linus is shutting down as of April 22, 2022.

Linus is an online account that works like a hybrid savings account and cryptocurrency investment account. 

When you deposit funds with Linus, your experience looks and feels a lot like a high-yield savings account.

But behind the scenes, your dollars are converted into cryptocurrency dollars and invested in a way that earns you a lot more than you would with the typical bank account. Keep reading to learn how it works, risks, fees, and if Linus makes sense for you.

Pros And Cons

What Is Linus?

Linus is a unique investment account. The interface and account feel a lot like a savings account. But behind the scenes, it’s far from an ordinary savings account.

Linus converts your dollar deposits into cryptocurrency, which is then invested. Depending on your balance, you can earn between 4% and 4.5% APY. Deposits are not FDIC- or SIPC-insured, so they’re riskier than a traditional bank account and many stock brokers.

How Linus Works

Deposits with Linus convert into the USD Coin cryptocurrency, a stablecoin partially sponsored by Coinbase. USD Coin is designed always to be worth exactly one dollar. The organization behind USD Coin maintains deposits to support the value of the currency.

Once converted into stablecoins, your deposits are then invested in cryptocurrency-related credit markets. By lending, staking, and investing cryptocurrency assets, Linus generates a return that translates to something similar to a high-yield savings account.

USD Coin operates on the Ethereum blockchain. So while it’s always worth a dollar, it’s a real cryptocurrency that's traded using blockchain networks. The cryptocurrency investments are part of a liquidity pool. In this modern credit product, cryptocurrency users stake their currency using a smart contract to support a range of borrowing and liquidity needs.

Linus Interest Rates

Interest rates at Linus can change monthly. You can view current and historical rates at the Linus website or when logged into a Linus account. As of writing, the current rates are:

As of September 2021, the average savings account interest rate nationwide was a paltry 0.06% APY. Even small balances at Linus earn 66 times more than the national average. While it’s a little riskier, the returns are much higher.

Linus Costs, Fees, And Minimums

Nobody likes paying fees for a bank or investment account. If you’re fee-averse, you’ll feel right at home at Linus. There are almost no fees or charges at all.

Linus doesn’t charge any recurring fees with no minimum balance requirements. You just need a cent in your account to start earning interest. However, if your account has a zero balance for an extended period, your account may be closed.

The minimum deposit or withdrawal is one dollar. That makes it very easy to get started. You can start with just one dollar and build from there. It’s a great alternative or addition to your current high-yield savings account strategy.

Linus works with a foreign card processor, so you may pay foreign transaction fees if you use a card to fund your account. When funding with an electronic funds transfer (ACH) or wire, you shouldn’t have to pay any additional fees.

That’s it. Linus won’t charge you any fees directly. It earns a profit by depositing your dollars into higher-yield products. Just like a bank, Linus takes a portion of the earnings and shares the rest with depositors.

How Does Linus Compare?

While other platforms pay interest on a wide variety of cryptocurrencies, Linus keeps things simple. You deposit cash and earn interest. That's it. Everything else (i.e. your cash being converted to USDC and subsequently lent out) happens by the scenes.

That simplicity is nice. It also means that you don't have to buy and hold non-stablecoin cryptocurrencies to earn interest. That could be attractive if the volatility of Bitcoin, Ethereum, or other cryptos worries you.

If you like the Linus model, you may also want to look into Outlet Finance as it's very similar. But if you're looking to earn interest on crypto that you already own and are HODLing, you'll need to choose another platform like Celsius or BlockFi. Here's a quick look at how Linus compares:

Linus Safety And Security

Linus is a financial technology company based in Nashville, Tennessee. It's not a bank and it’s not a traditional brokerage.

It’s riskier than a bank, though it appears to be relatively safe and upstanding. There’s always some risk when investing with cryptocurrency. And deposits with Linus may be at risk depending on what happens in the cryptocurrency markets.

To keep your Linus account safe, it’s essential to follow online best practices like using a unique, difficult-to-guess password for your account. You can also add two-factor authentication to secure your online account further.

Bonuses And Promotions

While promotions can change at any time, here’s a snapshot of how you can earn more as a new Linus customer right now:

Does Linus Make Sense For You?

Linus is an easy-to-use account that helps you make money from cryptocurrency without having to get into the technical side of cryptocurrency, crypto wallets, cold storage, staking, and lending. When you deposit dollars into Linus, they take care of the complex parts and pay you a highly competitive interest rate.

It’s an excellent choice for cryptocurrency beginners who want to earn from the crypto boom without getting their hands too dirty on the technical side. It’s also ideal for cryptocurrency enthusiasts looking for another route to diversify their income from crypto. As long as you understand the potential risks of cryptocurrency and Linus accounts, it’s a good choice to earn a competitive interest rate with an online account.

Open a Linus account here to earn your signup bonus >>>

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