Bitcoin Forum

hello guys
i have a question :

in (Binance Earn) Flexible Savings , they writes 5.97% profit for 7-Day APY (USDT)
i cant calculate my profit :

if Im staking 600 USDT then after 7 day, I receive 35.82 USDT ?

or 5.97% is yearly ?

after 7 day, how much I receive ? please tell me

please help me

best wishes

5.97% 7-day APY means that you will receive 5.97% profit annually and the interest is paid every 7 days.

The profit you will get every 7 days:

(1.0597)^{(7/₃₆₅)} - 1 = 0.00111 = 0.111%



$0.666

You can get more details at https://www.binance.com/en/support/articles/360034998492. You should know by now that such interest is too good to be true, and there is no way they can keep the service if they continuously pay such a ridiculous amount (even a ponzi is not that crazy).

If you're interested in 10% interest for 7 days maybe direct P2P lending is the alternative.

I would not say that the interest rates being offered by Binance are "too good to be true", however, I would say that "investing" with Binance is not without risk, and is high risk. Binance is taking their customers' deposits, and lending them out to other customers at a higher interest rate. Unlike with US banks, there is no FDIC insurance, so if Binance incurs too many losses from bad loans, they will be unable to repay all their deposit holders.

I don't think 6% APY is ridiculous number (for company like binance)
Their source of funds is pretty clear (trading fees) and in combination with effort to motivate users keeping the funds on platform (which I think is the main drive) it's reasobale from the bussiness point of view.
To me much more risky are those crypto.com, celsius etc. (where the source of funds is unclear ... probably it's lending but who knows)


@OP
The calculation you got from hosseinimr93 is correct, I will provide couple notes:
You will be paid every day (not just whole amount after those 7 days ).
The day you enter the funds are marked as subscription,next day they become active ( so your first pay comes 3rd day)

Here's how I roughly estimate what the rewards going to be (example 600 USDT, APY 6%):
600 x 6 \ 100
(result gives an amount you would earn keeping it whole year, to get daily reward divide it by 365, for monthly reward divide it by 12 ...)

They're like the banks that would put an APY but there's a confusion because they may look like that you're good on that rate that can be earned through certain period of days only, not annual.
There are other the same offer that could earn you 10% per annum for USDT like Abra. The rates varies from the platform that you use. Note that most of the same offers are rates annually.

A bit a mix of deception but we can really do math's it is just really that effective for those newbies that do make out on point decisions rather than on making a bit of research.

hosseinimr93 had already clarified those numbers above and does it seem to be worth on gaining 6 cents every 7-days? It isnt really worth for the risk.

 5.97% APY is nearly can be achieved on sticking with those traditional banks even giving out 10% APY isnt really worth for the risk.

Hosseinimr93 has given you the right computation, or so it seems to me.

I'm not discouraging you from it but I personally don't consider Binance's Flexible Savings' 5.97% APY worth all the risk. You can make such growth all by yourself in other ways.

Anyway, Binance has different investment offers. If you wish for a higher APY, you could try Binance Defi Staking. There are sold out offers but there are offers which are still open until now. https://www.binance.com/en/defi-staking

Please take note that this is not an investment advice.

5.97% APY is so low though. I wouldn't risk money for just cents. When you have got to risk, make sure there is a good reasonable reward.

Just think it through in this perspective.
You invested 600 USD into something and all you get is just 5.97% ($35.82) after a full year  ::)

I would rather just buy a Bitcoin dip on spot market with the 600 USDT and wait for bitcoin to pump. A 5.97% price increase is quite easy to achieve with Bitcoin within hours or days.

I tried them and the result a month later is horrible and not worth all the risks.
The numbers that are presented to you 5.97% (USDT) are annual, but they are not fixed.
Even the correct percentage mentioned by @ hosseinimr93 may be less than 0.111% based on variables that occur during locking, so it is better to invest that amount in Bitcoin or some POS coins.


Let's take another example, which is Stacking ADA Some wallets give you a better return than what Binance offered.

It depends on the type of savings, and you mean that if the locked savings. The op case is a flexible savings with anytime redemption time you want and you won't miss the best price.
However, learn from one's experience that not all platforms can meet redemption requests on time even on binance. This has happened to someone at his locked savings (https://bitcointalk.org/index.php?topic=5330161).

Binance does not pay their interest out of their trading fees. All bitcoin-related companies that pay interest on "deposits", will lend out the coin that is deposited to other customers at a higher rate than the deposit holders receive, and the "bank" will keep the difference between interest received, interest paid, and loan losses. This is true for Binance, and is true for celsius. I am not familiar with crypto.com, but if they are a legitimate business, this is what they do too.