Binance Savings (formerly "Binance Bao") is a cryptocurrency wealth management product offered by Binance, featuring flexible (demand), locked (time), and promotional deposit options. This guide will walk you through subscribing to and redeeming each product type, helping passive investors earn interest on their crypto holdings.
How Binance Savings Works
Binance Savings supports numerous cryptocurrencies, including BTC, ETH, BNB, BUSD, and EOS, with some locked deposits offering APYs exceeding 20%.
The platform generates returns through margin lending: Binance loans out user-deposited crypto to traders for leveraged trading, earning fees and interest—similar to traditional banking operations.
Key features:
- Guaranteed returns: Binance bears the lending risk
- Daily interest payouts
- Auto-compounding option for flexible products
- Transparent rate adjustments based on market conditions
Flexible Savings: Subscription & Redemption
Product Overview
Flexible savings mimic bank demand deposits:
- Instant redemptions
- 30+ supported assets (BTC, stablecoins, altcoins)
- Daily interest calculated from 7-day average APY
👉 Maximize your crypto yield potential
How to Subscribe
- Navigate to Binance Savings
- Select "Flexible" products
Click "Transfer" and:
- Enter amount (or select "Max")
- Accept terms
- Confirm transfer
Funds move from your Spot Wallet to Savings Wallet.
Auto-Compounding
Enable "Auto-Subscribe" to reinvest daily earnings, creating compound interest effects.
Redemption Process
- In Savings Wallet, select "Flexible"
- Click "Redeem"
Choose:
- Fast Redeem: Skips that day's interest
- Standard Redeem: Includes current day's earnings
Locked Savings: High-Yield Deposits
Key Features
- 4%-20% APY (vs. 1-4% traditional bank CDs)
- 7-120 day terms
- Limited quotas (popular terms sell out quickly)
Subscription Steps
- Select preferred Locked Product
Configure:
- Term length (longer = higher APY)
- Number of "lots" (100 units/lot)
- Auto-renewal to flexible
- Confirm transfer
Promotional Savings: Limited-Time Offers
These time-sensitive, high-APY locked products (e.g., "ERD: 10% APY for 7 days") often sell out within days.
How to Participate
- Check Promotions Page
- Transfer assets from Spot Wallet
- Monitor interest accrual (paid daily)
Optimizing Your Strategy
For Beginners
- Start with flexible stablecoin deposits (4%+ APY)
- Gradually allocate to locked products
Advanced Tactics
- Buy coins during price dips
- Deposit in high-APY savings
Sell during rallies to capture:
- Interest income
- Capital gains
👉 Advanced crypto yield strategies
FAQ
Q: Is Binance Savings safe?
A: Yes, Binance bears all lending risks while guaranteeing user returns.
Q: How often is interest paid?
A: Daily, directly to your Spot Wallet (unless auto-compounding).
Q: What's the minimum investment?
A: Varies by product—some start at 100 units ("1 lot").
Q: Can I withdraw locked funds early?
A: No, locked funds remain inaccessible until term completion.
Q: Where do high APYs come from?
A: Primarily from margin trading fees and leveraged loan interest.
Q: How are rates determined?
A: Based on market demand, borrowing activity, and Binance's risk assessment.
Disclaimer: Cryptocurrency investments carry substantial risk. This content is educational only and not financial advice.