Coinbase Just Turned Into a Bank? UK Users Can Now Earn 3.75% on Savings

Coinbase appears to now be expanding its footprint in the UK with a new offering that brings a traditional banking twist to crypto. Starting November 11, select users in the UK can open a Coinbase Savings Account, a new product powered by ClearBank that aims to merge fintech with regulated banking.

A step toward “everyday finance” for crypto users

The new savings account offers a 3.75% AER variable interest rate, paid daily on GBP balances. There’s no minimum deposit, no lock-in period, and withdrawals happen instantly, according to the announcement, making it function more like a modern fintech savings account than a typical exchange wallet.

Asides all these, the launch of this new savings account has Financial Services Compensation Scheme (FSCS) protection, covering deposits up to £85,000 ( over $100K) if the provider fails, the same safety net offered by major UK banks.

Keith Grose, Coinbase’s UK CEO, described the product as part of the firm’s broader goal to make Coinbase the “number one financial app” in the country.

“We’re focused on building products tailored to local UK needs that solve real pain points,” Grose said in a statement. The launch follows Coinbase’s earlier approval from the UK Financial Conduct Authority (FCA) as a Virtual Asset Service Provider (VASP), a milestone that solidified its regulatory status in the region.

Coinbase’s broader play in the fintech arena

The savings account complements other Coinbase features like the Coinbase Card, which allows users to spend from crypto, stablecoin, or fiat balances directly at merchants.

According to Mitesh Savjani, Coinbase UK’s Product and Growth Lead, the goal is to “offer the best of crypto and traditional finance in one platform.”

The rollout will expand to all UK users in the coming weeks, positioning the UK, already Coinbase’s largest international market, at the center of its global expansion efforts.

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