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Tuesday, June 28, 2022

Vauld Review – Earn Upto 12.68% Interest on Cryptocurrencies

Vauld is a lesser-known crypto exchange in India because they worked really hard on building the product before spending money on advertisements.

I started using Vauld a couple of weeks back – a very neat and easy-to-use app, super fast fund transfer and a bunch of cost-effective investment options.

For passive investors, the most lucrative option is to earn up to 12.68% interest on making fixed deposits of cryptocurrencies. As per CeFi Rates, Vauld is globally among the top five best places to earn interest.

Vauld advertises itself as “build wealth automatically with cryptos” and I feel that it is living up to its tagline.  I have earned more than 3000 Rupees with a small portfolio of 3L Rupees in less than 2 months.

Let’s briefly understand how Vauld is able to give you so much returns on crypto fixed deposits. 

Normal crypto exchanges take your money and allow you to buy or sell cryptocurrencies. Your unused money and cryptos sit idle in the exchange, similar to cash lying in your locker rather than a saving account.

Additional lending function at Vauld

But Vauld has created a centralized pool of funds with all the crypto assets locked in fixed deposits. This pool is used to lend the crypto coins to institutional borrowers and Vauld customers who want to trade with higher liquidity.

The lending function earns interest to Vauld which is ultimately passed on to the fixed deposit holders.

The arrangement is a game-changer as compared to other crypto exchanges like WaxirX and Zebpay that offer no income on idle sitting cryptocurrencies in the account.

Vauld Signup & Account Opening

Vauld Signup

You can easily signup for Vauld with your Google, Facebook, Twitter, Coinbase or Apple account.

If you don’t want to share your social media account then create an account using your email address.

Provide the following information on their signup page –

  1. Name, mobile number, and email id
  2. PAN number
  3. Address Proof (AADHAR card, Voter Id card, Passport or Driving License)

Vauld is super fast, hardly took 2 minutes to create my account.

Vauld KYC Process

For completing KYC you need to take a selfie and upload Aadhar details.

Vauld took 10 minutes for approving my KYC after the selfie. As per their website – Vauld normally takes around 30 minutes to approve KYC.

Overall the account creating was a smooth, easy and fast experience.

Vauld Dashboard and INR Deposit

Vauld Dashboard

You have a simple to understand dashboard when you log into your Vauld account.

Wallet – is a place where you can see all your INR and cryptocurrencies balances. On the wallet tab, you can –

  • Deposit and withdraw INR
  • Deposit and send a particular crypto
  • Take a crypto loan in BTC, ETH or other available coins like USDT and XRP

Fixed Deposits – section helps you create 1 month of term deposits on 30 top cryptocurrencies like BTC, ETH, USDT, XRP, UNI, LINK, AAVE, COMP, and BAT

Exchange – is a marketplace on Vauld with the facility to instant buy/sell, and trade in cryptos. You also get access to OTC trades and the AIP feature (details in the next section).

History – section lists out your past crypto and INR transactions. You can also find your fixed deposit-related transaction here.

Vauld INR Deposit

You can deposit INR funds to buy cryptos and earn interest on them.

Link your bank account by providing your bank account number and IFSC code. Vauld will verify your bank details by depositing Re.1 into your bank account.

For making deposits using UPI, you need to get your underlying bank account associated with the UPI ID verified with Vauld.

My bank verification happened instantly. Vauld allows INR deposits using cards, UPI, net banking, IMPS, NEFT and RTGS modes.

But only lists RTGS, IMPS, NEFT and UPI when you actually make a transfer.

Vauld INR Deposit

You will be able to see your name, a YES bank current account number, IFSC code as below.

Vauld INR Deposit - bank details

Don’t worry this is Vauld’s current account with Yes bank where it receives your INR deposits. To link your bank account you need to add the above details as a beneficiary.

Log in to your net banking account and add the account like you normally add for any other beneficiary.

Now you can transfer money into your Vauld account using IMPS, NEFT & RTGS mode through net banking or UPI as you normally make other payments.

Minimum INR Deposit – Re. 1

Maximum Deposit – No Limit

Time taken – 5 to 10 minutes

It took hardly 10 minutes time for me to transfer and get a confirmation message for money transfer into my account.

A huge benefit as compared to other crypto exchanges like WazirX where it may take a couple of hours to get INR credited and receive a confirmation message.

Vauld Crypto Deposit

Vauld also allows direct crypto deposits from your other wallets. You need to provide your crypto address for the cryptocurrency that you want to deposit.

Minimum Crypto Deposit – $1 worth of cryptos

Maximum Deposit – No Limit

Time taken – BTC usually takes 1-6 hours, other cryptos hit your account instantaneously.

Vauld Crypto Services

#1. Create Fixed Deposit to Earn Interest

By creating crypto FD in Vauld, you can earn –

  • 12.68% APY on stablecoins like USDT, DAI, USDC and BUSD
  • 6.70% APY on major cryptocurrencies like BTC, ETH and XRP
  • 3.04% APY on tokens like BAT, COMP, UNI, SUSHI and AAVE

Vauld offers fixed deposits on 30 major cryptocurrencies. You need to select the coin and click “Create Fixed Deposit”.

Vauld Creating Fixed deposit

You can select the amount of crypto for which you want to place FD or can choose the percentage (25%, 50% 75% or 100%) of the cryptos to be placed as FD.

The FD auto-renew option is pre-selected but you can renew only the principal amount using the “advanced options”.

The interest is calculated on a daily basis and paid weekly on all the cryptos placed in FD. The best part – there are no fees or penalties for closing FD. You will receive the interest rates for the duration of the active fixed deposit.

#2. Earn Savings Interest Rate

The idle lying cryptos in your account are shifted to the centralized pool and Vauld pays a savings interest rate on them.

Present savings interest rates for major cryptos are under –

Crypto Interest Rates (APY)
Bitcoin (BTC)4.60%
Ethereum (ETH)4.60%
Tether (USDT)9.41%
Ripple (XRP)4.60%
Uniswap (UNI)1.00%
Binance USD (BUSD)9.41%
Chainlink (LINK)1.00%
Polygon (MATIC)1.00%

The savings rate applies as soon as you deposit crypto into your account or buy on the marketplace.

Note – There are coins like BNB, DOT and DOGE on which you can’t earn any interest. You can only buy/sell and swap for other cryptos.

Vauld trade only coins

#3. Borrow Cryptos

You may borrow particular crypto for using the associated services. For example, you will need BAT crypto to pay for advertisement fees in the BAT blockchain.

Vauld offers loans by using your existing crypto assets as collateral. For example, you can take a BTC loan by placing ETH that you have with you as collateral.

Under the wallet section, select the crypto that you want to borrow and click “loans”.

Vauld Crypto Loans

The loans are approved instantly, and the cryptos are deposited into your account. You can borrow up to an LTV of 66.67%.

The minimum loan amount is cryptos equivalent to 1000 dollars. Vauld offers loans with a collateralization ratio of above 150%. That means for $1000 worth of loan you need to offer collateral in the form of cryptos worth $1500.

The cryptos kept as collateral are liquidated once the market value reaches 100% and the loan is closed.

Present borrowing interest rates for a few cryptos are under –

  • 7.50% for BTC, ETH and XRP
  • 13.0% for USDT, DAI and USDC
  • 4.0% for BAT, LINK and UNI

Borrowing rates for other cryptos can be found here.

You have the flexibility to repay the crypto loan anytime, in any number of installments. There are no additional charges or a fixed number of installments.

You need to pay only the interest portion on the loan taken there are no additional fees or hidden charges.

#4. Trade Crypto

Vauld offers exchange for –

  • Instant buy/sell of cryptos using INR funds
  • Instant Swap facility to get your preferred coin in exchange for another
  • Pro Trading platform with charts to trade in crypto pairs
  • OTC desk for fast settlement on large volume trades

Vauld has a centralized liquidity pool of over $50 million to buy and sell cryptos seamlessly. They have Binance as a tech partner for exchange functions.

The platform is easy to use for beginners as well as pro traders. I was able to place orders and able to sell and withdraw money easily.

The only issue is that Vauld takes only Over-The-Counter (OTC) trades for crypto/INR pairs. This means you can’t view the crypto/INR order books.

Vauld OTC exchange

But can place market and limit orders and can have instant settlements. The Vauld team is currently working on providing an order book.

#5. Automatic Investment Plan (AIP)

AIP functions similar to mutual fund investment using SIP. AIP allows automated small periodic investment in a basket of cryptos. The option is helpful for new investors in building long-term crypto portfolios over a period of time.

Based on themes there are pre-created crypto baskets like –

  • All in one crypto
  • Best of centralized token
  • Decentralized everything
  • Swaps for everyone

You can choose one of the existing baskets or create a new basket for AIP crypto investment.

For example, if you choose the “Swaps for everyone” basket then you are able to invest in tokens like UNI, 1INCH, SUSHI, CRV and BAL simultaneously.

Vauld AIP investment

You can set the buy condition to –

  • Buy the dip if the price drops at 2%, 5% or 10%
  • Daily, weekly or monthly interval
  • And the amount that you want to invest

Fees & Charges

#1. INR Deposit and Withdrawal Fees

ModeFeesMinimum Amount
Deposit RTGS0%2 Lacs
Deposit IMPS & NEFT0%Re. 1
Deposit UPI – Mobikwik1.77%Re. 1
Withdrawal RTGS/IMPS/UPI0%Re. 1

The maximum deposit limit due to banking channels is – Rs. 2 lacs for IMPS and 1 lac for UPI deposits. There is no cap on daily withdrawals.

#2. Crypto Deposit and Withdrawal Fees

Vauld charges ZERO deposit fees on crypto coin deposits into your account. But minimum deposit amount is applicable for certain cryptos.

Charges for few cryptos are under –

Crypto coinsFeesMinimum Deposit
BTC0%No limit
ETH0%0.005 ETH
SUSHI0%No limit

There are no deposit fees from Vauld but you will need to pay the network fees when you deposit cryptos. The network fees vary depending on congestion and confirmations needed.

You are free to withdraw any amount of cryptos from your Vauld account, there are no minimum or maximum withdrawal limits.

#3. Trading Fees

Vauld charges the lowest up to 0.1% for trading in crypto pairs. Which is half as compared to 0.20% and higher charged by other crypto exchanges like WazirX.

Details of maker fees, taker fees and minimum trading amount for a few of the popular crypto pairs are under –

Crypto PairMaker FeesTaker Fees Min Trade Amount
USDC/ INR0.1%0.1%1USDC

Vauld Trading Platform & Security

You can access the Vauld exchange platform and services on your smartphone, laptop and PC.

Vauld offers –

  • Mobile App devices – iOS & Android
  • Browser-based web platform

The platform is easy to use and intuitive with all the functions easy to find on the dashboard.

Binance is their technology partner for exchange. You have a robust platform that is easy to navigate and quick to execute buy/sell trades, money deposits & withdrawals and create FD.

Vauld deploys Multi-Factor Authentication (MFA) in association with Google Authenticator.

You will need to enter the dynamically changing passcode for login and every critical action like fund withdrawal on the platform.

Vauld Security features

Further, BitGo is their insurance and custody partner providing $100 million coverage in case of hacking attacks.

What I Like

  • High interest earning on cryptos lying idle in the account
  • Almost instant money deposit at 0% fees on IMPS, NEFT & RTGS
  • Fast account opening and KYC
  • Automatic Investment Plan to invest in a crypto basket
  • Backed by investors like Peter Thiel’s Valar Ventures, Coinbase, Pantera, LuneX
  • $100 million BitGo insurance coverage

What Can Be Improved

  • Include an order book based trading for crypto/INR pairs
  • Allows FD only on 30 cryptos
  • No interest earnings on trade only coins.

Final Words

Vauld offers a tool to create long-term wealth for crypto investors. Beginner investors can use the AIP and fixed deposits to create a decent crypto portfolio of around 8-10 lacs.

You have an option to earn up to 12.68% interest on cryptos that would otherwise have been lying idle in your account. I would suggest you open Vauld account as the platform is easy to understand, navigate and the money deposit is super fast creating a hassle-free user experience.

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