Flexible vs. Fixed-term Savings: What’s the difference

Quick answer.

Flexible and Fixed-term Savings are two ways to make your crypto grow.

• Flexible Savings lets you earn interest while keeping full access to your funds.
• Fixed-term Savings puts your assets to work for a chosen period in exchange for higher returns.

The difference is about how you balance liquidity today with growth tomorrow, which is the essence of long-term wealth building.

Earning on your crypto: The new wealth habit.

For decades, people have built wealth by letting their capital work through savings accounts, bonds, or dividend stocks. 

But here’s what’s changed with crypto: You no longer wait years for modest returns. Crypto savings usually pay out daily, often in the very asset you deposit.

This makes interest a living, breathing part of your wealth instead of a side note. Your assets are productive, compounding every day, while you decide to keep them accessible or allocate them for a fixed period to experience higher growth.

Flexible Savings.

Think of Flexible Savings as a way to keep your Bitcoin, Ethereum, or stablecoins productive while still having access to them. 

Your assets earn daily compounding interest, and you can withdraw them whenever you need to. There’s no lock-up or waiting period.

It’s perfect for people who:

• Trade occasionally or use crypto for payments.
• Value liquidity — life is unpredictable, and wealth should stay useful.
• Enjoy watching their balance grow daily as interest accumulates automatically and appears right in the account.

Example: When you add crypto to your Nexo account, for example, by transferring 1 ETH, that amount appears in your Savings Wallet. From that moment, it starts earning daily interest automatically under the Flexible Savings option.

You don’t need to move it anywhere or allocate it to a separate product — interest accrues simply because the assets are held in your Savings Wallet.

If the rate is 5% per year, that’s about 0.000137 ETH per day. If you transfer or withdraw that ETH later in the week, you still keep the interest you’ve earned for the days it remained in your wallet.

In simple terms: Flexible Savings lets you keep your digital assets active instead of idle. They’re the bridge between holding and growing.

Fixed-term Savings: The long game of wealth.

With Fixed-term Savings, you allocate your assets for a set period — one, three, six, or twelve months and earn a higher return. This approach rewards patience. The longer you commit, the better the rate. 

It’s ideal for people who:

• Think in seasons, not days.
• Can put assets aside without needing immediate access to them.
• Want their savings to compound quietly in the background.

Example: You lock 1 ETH for three months at a 7% rate. At the end of the term, you receive your principal plus interest — roughly 0.0173 ETH.

That might not sound dramatic on a daily basis, but making use of Fixed-term Savings consistently over time can turn it into one of the most stable pillars of digital wealth.

In simple terms: Fixed-term Savings is your “foundation layer.” It turns idle capital into a steady stream of deliberate, predictable, and long-term growth.

How to think about the two together?

You don’t have to choose one or the other — wealth is about balance.

Most investors split their holdings:

• Keep a flexible portion — your “liquid wealth,” ready for opportunities or emergencies.
• Keep a fixed-term portion — your “patient capital,” compounding in the background.

The mechanics of earning.

When you top up crypto to your Savings Wallet, your assets start generating interest automatically at an annual rate. The rate you see reflects the yield you earn over a year, with interest typically added to your balance daily.

Interest can be paid:

• In kind — e.g., you add BTC and earn BTC.
• In tokens — some platforms offer higher rates when you receive interest in their native token.

On Nexo, for instance, you can choose between Flexible and Fixed-term Savings options and see your interest accrue daily.

How Nexo fits in?

With Nexo’s interest-bearing products, you can decide how your wealth works:

• Flexible Savings: Earn daily compound interest, withdraw anytime.
• Fixed-Term Savings: Commit your assets for higher rates.
• Extra interest: Earn up to 2% more when receiving interest payouts in NEXO Tokens.
• Transparent earnings: For Flexible Savings, interest is credited daily and visible in your account. Fixed-term Savings interest is paid at the end of the term.

Risks and things to know.

Every form of yield comes with trade-offs.

• Rate changes: Economic factors can affect variable rates.
• Platform risk: Always use platforms with strong custodial partners and clear risk disclosures.
• Regulatory limits: Some jurisdictions restrict earning services — check availability before adding funds.

Frequently asked questions.

1. What’s the main difference between Flexible and Fixed-term Savings?

Flexible Savings lets you access your crypto anytime while still earning daily interest. Fixed-term Savings allow you to commit your assets for a set period in exchange for a higher return.

2. Why would anyone commit funds when they could stay flexible?

Because wealth loves patience. Committing funds even for a few months builds discipline and allows platforms to offer stronger rates. 

3. Can I withdraw from my Fixed-term Savings early?

Some platforms allow it, but usually, you lose interest for that term. Others like Nexo don’t.

4. Is this passive income?

Yes — but not in the “set and forget forever” sense. You make an active choice once, and after that, your assets earn and compound automatically every day. 

5. How do I use both types in a wealth plan?

Keep your “opportunity capital” in Flexible Savings — funds you might deploy or use for trading. Keep your “foundation capital” in Fixed-term Savings — funds you want to grow steadily without distraction.

6. What’s the biggest mistake people make with crypto savings?

Treating them like short-term trades. Saving is slow power. The biggest wins come from consistency, not timing.

7. Is interest paid in the same crypto asset I add?

Usually yes, though some platforms give higher rates if you take payouts in another asset (like NEXO Tokens).

8. How does this actually build wealth long-term?

Because the interest you earn gets added to your balance and starts earning its own interest. That’s compounding. For example, if you earn 6% annually on $10,000 in crypto savings, that’s about $600 in a year — and the next year, you’re earning interest on $10,600 instead of the original amount.

These materials are accessible globally, and the availability of this information does not constitute access to the services described, which services may not be available in certain jurisdictions. These materials are for general information purposes only and not intended as financial, legal, tax, or investment advice, offer, solicitation, recommendation, or endorsement to use any of the Nexo Services and are not personalized, or in any way tailored to reflect particular investment objectives, financial situation, or needs. Digital assets are subject to a high degree of risk, including but not limited to volatile market price dynamics, regulatory changes, and technological advancements. The past performance of digital assets is not a reliable indicator of future results. Digital assets are not money or legal tender, are not backed by the government or by a central bank, and most do not have any underlying assets, revenue stream, or other source of value. Independent judgment based on personal circumstances should be exercised, and consultation with a qualified professional is recommended before making any decision.