Coinbase Launches Savings Account to Rival UK Banks, Offers 3.75% Interest

Coinbase is making inroads into Britain’s retail banking sector with a new savings account that offers 3.75% AER variable interest, in a bid to rival traditional UK banks. According to an official release, the crypto exchange, in partnership with ClearBank, is offering daily interest payments, instant deposits and withdrawals, and FSCS protection for balances up to £85,000, making it the first crypto-native exchange to roll out a bank-style product in the UK.Under the new program, eligible UK users can open a savings account directly within the Coinbase app, earning 3.75% AER paid daily on GBP balances. Big unlock for our users in the UK – earn interest daily on your GBP savings (3.75% AER).Eligible deposits up to £85k are FSCS protected, like any other UK bank account. Powered by partnership w/ @clear_bank.Instant access, and it’s simple to swap into crypto when you want. pic.twitter.com/fezFCm3uCn— Brian Armstrong (@brian_armstrong) November 11, 2025 The partnership with ClearBank, a regulated UK institution, ensures deposits fall under the Financial Services Compensation Scheme (FSCS), providing protection equivalent to that of major banks such as Barclays or Lloyds.“Supporting a high interest and instant access savings account alongside Coinbase’s most trusted crypto exchange with stablecoins, 260+ assets, is a step on the path to updating the financial system for the UK.” Coinbase Keith Grose said.Coinbase’s 3.75% Rate Competes With Traditional BanksThe average easy-access savings rate in the UK currently hovers around 4.2%–4.5% AER, according to data from MoneySavingExpert and Money.co.uk. While Coinbase’s 3.75% rate sits slightly below top-tier offers, it exceeds many standard flexible accounts. Major high-street banks, such as HSBC and NatWest, still pay between 1.15% and 3.5% on similar deposits.According to Keith Grose, CEO of Coinbase UK: “Our aim is building the UK’s number 1 financial app.”This means the goal is to be Revolut, not Binance. Just as it’s Coinbase vs Robinhood in the US, it could be Coinbase vs Revolut in Europe. 1/ COIN vs HOOD:– @Coinbase is a bet on crypto volumes + institutional infra.– @Robinhood is a bet on the fintech super-app with broader, steadier growth.Both are converging, but the paths (and risks) differ. pic.twitter.com/Nj7jqnW8Vr— Marc Arjoon (@marcarjoon) August 29, 2025 “Barclays, NatWest, and HSBC can all match or beat 3.75%, but none let you move GBP to BTC in the same app,” said Simon Taylor, a London-based fintech analyst. “It’s not just about the rate, it’s about capturing users who want seamless access between their GBP savings and crypto portfolios,” Taylor added.He sees Coinbase becoming a safe haven for Brits to bank and challenged UK banks to catch up.The Bank Disintermediation ThreatThe launch comes amid growing concern that crypto-linked products could drain deposits from traditional banking. Standard Chartered recently warned that over $1 trillion could flow out of emerging-market banks into stablecoins by 2028. Source: J.P. MorganThe Bank of England has repeatedly warned that digital money adoption could trigger “bank disintermediation“, where households shift deposits into digital alternatives, threatening financial stability and credit availability.Citigroup’s Ronit Ghose drew parallels to the late 1970s when money market funds skyrocketed from $4 billion to $235 billion in seven years, draining bank deposits. In 1971, the US ran out of money and defaulted on its debts. Now, they didn’t say it that way. But by moving away from the gold standard, money as we understood it ended.I expected the stock market to plunge, but it went on to rise nearly 25%. That surprised me. But when I… pic.twitter.com/jlaR9ZVF8a— Ray Dalio (@RayDalio) May 13, 2025 However, Coinbase’s Faryar Shirzad countered that the “stablecoins will destroy bank lending” narrative ignores reality.According to him, “Most stablecoin demand comes from outside the US, expanding dollar dominance globally, not competing with your local bank.”UK £20,000 Stablecoin Cap vs Coinbase £85,000 Savings LimitCoinbase’s savings launch comes just days after the Bank of England proposed a £20,000 cap on stablecoin holdings for individuals.Yet Coinbase allows deposits up to £85,000 with FSCS protection.This effectively allows the crypto exchange to offer a higher balance ceiling than permitted under the new stablecoin limits, potentially luring Brits to opt for its savings option.Tom Duff Gordon, Coinbase’s vice-president of international policy, told the Financial Times that “imposing caps on stablecoins is bad for UK savers, bad for the City and bad for sterling.“ UK’s central bank wants to cap how much stablecoin people can hold, but crypto groups are fighting back, warning the move could choke innovation and leave Britain trailing rivals.#bankofengland #stablecoins https://t.co/lSNMQrEp7z— Cryptonews.com (@cryptonews) September 15, 2025 Simon Jennings of the UK Cryptoasset Business Council added that “limits simply don’t work in practice” because issuers cannot monitor token holders in real time.The post Coinbase Launches Savings Account to Rival UK Banks, Offers 3.75% Interest appeared first on Cryptonews.