There are five realistic places euros can sit in 2026: bank savings, money market funds, centralised crypto platforms, direct onchain lending, and non-custodial euro accounts. This piece compares the rates, risks and trade-offs of each. Rates are variable and none of the options is guaranteed.

General information, not financial advice. This piece explains how five common places for euros work: bank savings accounts, money market funds, centralised crypto platforms, direct onchain lending and non-custodial euro accounts. Rates mentioned are typical published rates at the time of writing; they change and none is guaranteed.

Euros can sit in very different places, and each one works differently: who holds the money, what protects it, how the rate is set and how quickly you can get it back. This article lays those differences side by side.

For each option it covers who runs it, what protects it, how the rate is set, access and liquidity, and the main risks and costs. It does not rank the options or suggest how to split your money; that depends on your circumstances.

If you're new to stablecoins, our plain-English guide to stablecoins is a useful starting point. For more on euro stablecoins themselves, see our euro stablecoin comparison.

Quick comparison: euro yield options at a glance

Typical rates below are published rates at the time of writing, from banks, fund providers, platforms and onchain markets. They move over time and are not guaranteed.

EU bank savings: run by a bank. Protected by the national deposit guarantee up to €100,000 per bank per depositor. Rate set by the bank (typically 0.5 to 2%). Usually instant access.

Money market funds: run by a fund manager and bought through a broker. No deposit guarantee; regulated as funds. Return follows short-term interest rates (typically 2 to 3%), minus fund costs. Settlement in 1 to 3 days.

Centralised crypto platforms: run by a company that holds your funds. No deposit guarantee. Rate set by the platform, often with conditions (typically 3 to 5% once conditions apply). Access depends on the platform's terms.

Direct onchain lending: public lending protocols; you hold your own funds. No deposit guarantee. Rate set by borrower demand in the market (typically 3 to 5%). Withdrawal when market liquidity allows.

Non-custodial euro accounts: an app that connects your own account to onchain lending markets. No deposit guarantee. Rate set by the underlying market, minus any product fee. Withdrawal when market liquidity allows.

Option 1: European bank savings accounts

How it works

A bank holds your euros as a deposit and pays interest at a rate it sets. Deposits are covered by the national deposit guarantee scheme up to €100,000 per bank per depositor, under EU rules.

How the rate is set

Each bank sets its own rate, and it differs a lot by country, bank and product. At the time of writing, instant-access accounts at major banks typically paid 0.5 to 2%, with some online banks paying more under conditions. Fixed-term deposits usually pay more in exchange for locking the money for a set period. Some products are regulated nationally, such as France's Livret A.

Access and liquidity

Instant-access accounts let you withdraw at any time. Fixed-term deposits lock the money until the term ends, or charge a penalty for early withdrawal.

Main risks and costs

  • Inflation: when the rate is below inflation, the money buys less over time
  • Bank failure above €100,000: amounts above the guarantee limit are not protected
  • Account restrictions: banks can freeze, restrict or close accounts, usually for compliance reasons
  • Transfers outside the euro area can be slow and expensive

Option 2: Money market funds and short-term bond ETFs

How it works

A money market fund pools investors' money and buys very short-term, low-risk debt, mostly European government bills and high-grade corporate paper. Short-term bond ETFs work in a similar way. You buy fund units through a broker. Examples include funds from Amundi, BlackRock (iShares) and Vanguard.

What protects it

Funds sold to retail investors in the EU are regulated, mostly under the UCITS rules, and the assets are held separately from the fund manager. There is no deposit guarantee.

How the return is set

The return follows short-term interest rates, close to the ECB's policy rate, minus the fund's costs (typically 0.10 to 0.30% a year). At the time of writing, euro money market funds typically returned 2 to 3% a year. The return changes when rates change.

Access and liquidity

Most funds settle sales in 1 to 3 business days. You need a broker account.

Main risks and costs

  • No deposit guarantee
  • Small market and credit risk: the unit price can move slightly, especially in stress events
  • Fund costs and broker fees
  • Tax treatment differs by country and by share class

Option 3: Centralised crypto earn platforms

How it works

A company holds your euros or stablecoins and pays a rate on them. Examples include Nexo, YouHodler and Bitpanda. The platform lends the funds out or uses them in other strategies and passes part of the income to you.

What protects it

There is no deposit guarantee. Your protection is the platform's licence, its terms and its financial health. Several platforms failed in 2022 (Celsius, BlockFi, Voyager), and their users lost access to large parts of their balances.

How the rate is set

The platform sets the rate and can change it. Advertised rates on euro balances often depend on conditions such as balance tiers, holding the platform's own token, lock-up periods or introductory offers. At the time of writing, rates once these conditions applied were typically around 3 to 5%. The platform keeps part of what it earns.

Access and liquidity

Withdrawals follow the platform's terms. Lock-ups are common, and some platforms have paused withdrawals during market stress.

Main risks and costs

  • Custody: the platform holds your money, so its failure, a hack or a sanction puts your funds at risk
  • Withdrawal limits and lock-ups
  • The platform's margin on what it earns
  • Regulatory change: some platforms have left EU markets under MiCA

Option 4: Direct onchain lending

How it works

You deposit stablecoins such as EURC or USDC from your own wallet into a public lending protocol such as Aave or Morpho. These are smart contracts that match lenders with borrowers who post collateral. There is no company holding your funds. Our guide to where this yield comes from explains the mechanism.

What protects it

There is no deposit guarantee. Loans are over-collateralised, and the protocols' code is public and audited, but audits reduce risk rather than remove it.

How the rate is set

The rate moves with borrower demand and is set by the market, not by a company. At the time of writing, major markets typically paid around 3 to 5% a year on EURC and USDC. Rates can rise sharply in busy markets and fall in quiet ones. A small protocol fee is deducted.

Access and liquidity

You can usually withdraw at any time, as long as the market has enough unborrowed liquidity.

Main risks and costs

  • Smart contract risk: a bug in a protocol can cause losses
  • Stablecoin risk: if the stablecoin loses its peg, the deposit loses value
  • Liquidity risk: withdrawals can be delayed when most of a market is borrowed
  • Technical steps: wallets, network fees, token approvals and signing transactions
  • No customer support
  • Tax reporting can be more involved than for a bank account

Option 5: Non-custodial euro accounts

How it works

An app gives you a self-custodial account (a wallet only you control) that holds stablecoins such as EURC and USDC, with tools to send, receive and swap them. Some of these apps also connect your account to onchain lending markets, so you can deposit into them without handling the technical steps yourself. Defied is one of these; others include Rebind and Bleap.

What protects it

There is no deposit guarantee. The app cannot move or freeze your funds, because you hold the keys. The lending markets carry the same protections and risks as direct onchain lending.

How the rate is set

The rate is whatever the underlying lending market pays, which varies and is not guaranteed. Some apps pass that rate through unchanged and some take a fee, so check each product's pricing.

Access and liquidity

Withdrawals depend on the liquidity of the underlying market. If the app stops working, you can recover the account with standard self-custody methods, such as exporting the private key into another wallet.

Main risks and costs

  • Smart contract risk in the underlying protocols
  • Stablecoin risk
  • Dependence on the app's infrastructure for everyday use
  • A newer category: most products are less than two years old
  • Any product fee on top of the market rate

How the options differ

The five options differ along a few lines. None of them is right or wrong in general; what suits someone depends on their circumstances, and this article doesn't make that call.

Who holds the money. A bank, a fund's custodian or a crypto platform holds it in the first three options. In direct onchain lending and non-custodial accounts you hold it yourself.

What protects it. Only bank deposits carry a deposit guarantee, up to €100,000 per bank per depositor. Funds are regulated investment products. Crypto platforms rely on their own licence and solvency. Onchain markets rely on collateral, public code and audits.

How the rate is set. Banks and platforms set their own rates. Money market funds follow short-term interest rates. Onchain markets follow borrower demand. All of these change over time and none is guaranteed.

How quickly you can get it back. Instant-access bank accounts are immediate. Funds take 1 to 3 days. Platforms follow their own terms. Onchain markets depend on available liquidity.

What it takes to use. Bank accounts and platforms need an account with the provider. Funds need a broker account. Direct onchain lending needs a self-custody wallet and some technical knowledge. Non-custodial accounts handle most of those steps.

Interest and yield are taxable in most EU countries; see our plain-language crypto tax guide.

Key questions answered

What is the difference between these options?

They differ in who holds the money, what protects it, how the rate is set and how quickly you can withdraw. Bank deposits carry a deposit guarantee up to €100,000; the other four don't. Banks and platforms set their own rates, money market funds follow short-term interest rates and onchain markets follow borrower demand. All rates change and none is guaranteed. This is general information, not advice.

What rates do these options pay?

At the time of writing, typical published rates were 0.5 to 2% for instant-access bank savings, 2 to 3% for euro money market funds and around 3 to 5% in major onchain lending markets and the crypto platforms that use them. These figures move over time and are not guaranteed. Advertised rates far above the market usually come with conditions, lock-ups or extra risk.

Can I lose money earning interest on euros?

Yes, in different ways depending on the option. With bank savings, you can lose part of your balance if the bank fails and you hold more than the €100,000 that deposit insurance covers. Money market funds can have small price fluctuations. Centralised crypto platforms can fail and take user funds with them, and this has happened repeatedly. Direct onchain lending and non-custodial accounts carry smart contract risk, which is small for established protocols but not zero. No yield-earning option is completely risk-free.

How does onchain lending differ from a centralised crypto platform?

On a centralised platform a company holds your money, so its failure puts your funds at risk, as happened with Celsius, BlockFi and Voyager. In onchain lending you deposit into public smart contracts from your own wallet, so no company holds the funds, but there is smart contract risk instead. Large protocols such as Aave and Morpho have long operating histories, which is not a guarantee of future safety.

How are stablecoin yields taxed in Europe?

Tax treatment varies by country. In most EU jurisdictions, yield earned on stablecoins is taxable as interest income, capital gains or miscellaneous income, depending on how it is classified locally. Most users will need to report it on their annual tax return. The details depend heavily on the country, so consult a tax advisor familiar with your jurisdiction.

What's the difference between a savings account and a euro money market fund?

A savings account is a deposit at a bank. It's protected by deposit insurance up to €100,000, and the bank pays you whatever interest rate it chooses. A money market fund is an investment fund that buys very short-term, low-risk debt (mostly government and high-grade corporate paper) and passes the yield to investors. Money market funds typically pay closer to the ECB rate than banks do, but they have no deposit insurance and aren't quite as instantly liquid.

How risky are non-custodial euro accounts?

They carry the risks of the lending protocols they connect to (smart contract risk), of the stablecoins they hold and of the app's infrastructure. The app can't move or freeze your funds, because you hold the keys. There is no deposit guarantee, and rates vary and are not guaranteed.

Can my bank stop me from earning on stablecoins?

Banks can't directly stop you from earning on stablecoins. They can flag transactions to and from crypto-related services, occasionally restrict transfers to certain platforms, and in some cases close the accounts of customers they see as high-risk. This varies by bank: some are crypto-friendly (BBVA, Revolut, several German online banks), others are restrictive.

What does direct onchain lending involve?

You manage a self-custody wallet, pay network fees, approve token contracts and use protocol interfaces directly. Non-custodial euro accounts handle most of those steps for you, while the underlying markets and their risks stay the same.

How does Defied compare to a regular bank?

Defied is a non-custodial software interface for stablecoins, not a bank. It doesn't hold your money: you do, in an account only you control. It isn't covered by deposit insurance. You can hold, send and swap EURC and USDC and, if you choose, deposit into public onchain lending markets at rates that vary and are not guaranteed. It doesn't replace a bank account.

The bottom line

Bank savings, money market funds, centralised crypto platforms, direct onchain lending and non-custodial euro accounts each hold euros in a different way. They differ in who holds the money, what protects it, how the rate is set and how quickly you can get it back. Rates in all of them change over time, and only bank deposits carry a deposit guarantee.

Before using any of them, read the provider's terms, fees and risk information. This article is general information, not financial advice.

Sources

Start with Defied

Defied is a wallet for EURC and USDC that only you control. Hold, send and swap them, and lend in public onchain markets at variable rates, without a bank. Get the app for iPhone, or use it in your browser.

This article is for informational purposes only. Defied is a non-custodial software interface and does not provide financial advice. Please read our risk disclosure and terms of use before using the Services.

Last updated: 2026-11-02

This article is for general information only and is not investment, legal or tax advice. Any rates mentioned are third-party protocol or market rates at the time of writing; they change constantly and are not offered or guaranteed by Defied. Stablecoins are not bank deposits and are not covered by deposit guarantee schemes. Defied is a non-custodial software interface and does not hold customer assets. Read the Risk Disclosure before using the service.