Article Summary
This article explains how Bitcoin Interest on Cash works on River, including calculations, eligibility, FDIC coverage, fees, taxes, and payout preferences.
With River's Bitcoin Interest on Cash, you can earn bitcoin with your cash. Cash reserved on your River account accrues interest at 3.3%, and that interest can be automatically converted to bitcoin.
River is not a bank. USD funds are deposited by Lead Bank, Member FDIC. APY is subject to change. Fees may apply. Terms and conditions apply. See river.com/bitcoin-interest for more information.
- When will I start earning interest?
- How is interest calculated?
- Is there a minimum amount needed to hold cash on River?
- When will I receive my Bitcoin Interest on Cash?
- Are there any fees for earning Bitcoin Interest on Cash?
- Do I still earn interest if I have cash reserved for Target Buys or recurring buys?
- Can I receive my interest in cash instead of bitcoin?
- Does my interest compound?
- How is the interest generated?
- Is my cash FDIC-insured?
- Can I opt out of earning interest?
- Are there any tax implications for earning Bitcoin Interest on Cash?
When will I start earning interest?
Cash deposited on River will automatically start earning interest within 2 business days. You can earn interest up to $5,000,000 in your River cash balance.
How is interest calculated?
You accrue interest daily based on your interest-eligible cash balance. Each day, River buys bitcoin at an amount equivalent to the cash interest you have accrued for that day. On the first of the following month, you will receive an interest deposit from River for the total amount of bitcoin earned throughout the previous month.
The reported value of the bitcoin interest you receive is the bitcoin value at the time it is paid to your account, not the daily value of bitcoin you have accrued.
Is there a minimum amount needed to hold cash on River?
There is no minimum to hold cash on River. To earn interest, you must hold sufficient cash to earn at least $0.01 worth of bitcoin interest per day.
When will I receive my Bitcoin Interest on Cash?
You will receive your bitcoin interest on the first day of each month. This deposit will include the total amount of bitcoin you have accrued during the previous month.
Are there any fees for earning Bitcoin Interest on Cash?
There are no fees for Bitcoin Interest on Cash. River does not charge fees for holding cash or bitcoin. There are also no fees on the conversion from cash to bitcoin for the daily accrued interest.
Do I still earn interest if I have cash reserved for Target Buys or recurring buys?
Yes, with Bitcoin Interest on Cash, all cash at River earns interest. This includes cash reserved for Target Buys and zero-fee recurring orders. You will not continue to earn interest once that cash has been used to purchase bitcoin.
Can I receive my interest in cash instead of bitcoin?
Yes, you can receive your interest in cash instead of bitcoin. You can adjust this in your account settings on river.com in your "Profile & Settings." Under "Bitcoin Interest on Cash," you can switch your payout currency.
Please note that any change to your payout currency will not take effect until the first day of the following month.
Does my interest compound?
Interest denominated in bitcoin does not compound, as interest is only earned on your cash balance. Interest denominated in USD will compound monthly.
How is the interest generated?
Your account earns interest on cash through our banking partner, Lead Bank, Member FDIC. Your cash reserved at Lead Bank is FDIC-insured up to $250,000. The accrued interest is then converted to bitcoin for free on a daily basis. Bitcoin is not FDIC-insured.
Is my cash FDIC-insured?
Yes, your cash that is earning interest with River is reserved at Lead Bank, Member FDIC, and is FDIC-insured up to $250,000. Bitcoin is not FDIC-insured. Additional disclosures are available here. For more information on this, please see this Help Center article.
Can I opt out of earning interest?
Yes, you can opt out of Bitcoin Interest on Cash. To opt out of earning interest, please contact Client Services.
Are there any tax implications for earning Bitcoin Interest on Cash?
Interest earned is treated as income. Once per month, you will receive one tax lot with the date of payout, cost basis, and the average price of the bitcoin interest. For more information on taxes, please see this Help Center article.
Please note that River does not provide investment, financial, tax, or legal advice and recommends consulting a tax professional for guidance.
River Financial Inc. ("River") is not a bank. USD funds are deposited by Lead Bank, Member FDIC. Your USD is FDIC-insured up to $250,000, inclusive of any deposits that you already hold at Lead Bank in the same ownership capacity. FDIC insurance may protect against a failure by Lead Bank, but does not protect against River's failure, nor does it protect against theft or fraud. Bitcoin is not insured by the FDIC, and may lose value.
Interest may be earned on cash that has settled at Lead Bank. The current interest rate is 3.3%, and is subject to change. You may choose to receive interest payouts in Bitcoin or in USD. Lead is not affiliated with River's Bitcoin program, products, or offerings. Not available in all states. Fees may apply. Please review the Terms of Service for eligibility restrictions and additional details.
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