Xapo Bank Review

Xapo Bank is a private financial institution that allows you to store USD, buy/store bitcoin, and earn interest on both currencies.

Description

What is Xapo Bank? Xapo Bank is a private financial institution that provides an account for storing USD and offers services to buy, manage, and securely hold bitcoin. With Xapo Bank, you can have a single account that holds both currencies, and you can earn interest on your deposits in both USD and bitcoin. Xapo Bank also offers a bitcoin wallet and a bitcoin debit card. The bitcoin wallet is a secure way to store your bitcoin, and the bitcoin debit card allows you to spend your bitcoin at any merchant that accepts Visa payments. The card also offers cashback rewards in the form of bitcoin.

In addition, Xapo claims to be the first bank to support the Lightning Network to make and receive bitcoin payments faster and cheaper.

How to Open Xapo Account

To open a Xapo Bank account, begin by filling out the membership application form as part of the onboarding process. Xapo team will carefully review your application and contact you with an invitation link once your onboarding is ready to begin. Upon receiving the invitation link, you can proceed to activate your account using the Xapo Bank app. To get started, simply download the Xapo Bank app from either the App Store or Google Play.

To verify your identity, Xapo requires you to provide a photo of your international passport and submit a real-time video of yourself. Xapo must verify your address in order to comply with regulatory requirements before you can open a Xapo Bank account and become a member. As a member, you’ll have a dedicated Xapo Bank account manager who will provide assistance, answer your questions, and support you. Currently, Xapo does not support business accounts.

Xapo Interest Rate

If you deposit your money in the savings account, you’ll earn an annual interest rate of 4.1% on USD deposits and 1% on bitcoin deposits. You also get 1.1% cashback on all Xapo card transactions

Xapo Card

The bank offers both physical and virtual card. The Xapo debit card enables you to spend USD and bitcoin at Visa-accepting merchants worldwide. Xapo card is available in 100+ countries and offers the following features:

  • Dual functionality: The Xapo debit card supports both bitcoin and fiat currency spending.
  • Cashback: You earn 1.1% cashback on all purchases.
  • No extra fees: Using the Xapo debit card for bitcoin transactions incurs no additional charges.
  • Premium benefits: You enjoy perks like airport lounge access, one free access per year, and global Wi-Fi.
  • Fee-free features: Foreign exchange transactions have no fees.
  • Autoconversion feature: If you do not hold enough USD in your account, Xapo will automatically exchange some bitcoin from your wallet to cover the transaction.

Xapo Bank Card Limits

Xapo Bank sets maximum daily limits for card purchases, covering both in-store and online transactions, at $50,000, while ATM withdrawals are capped at $2,000 per day. These limits are subject to adjustment by Xapo Bank. Additionally, users have the flexibility to assign individual spending limits for each Xapo card, which apply to both purchases and ATM withdrawals. This feature serves as a crucial tool for mitigating financial risk in the event of unauthorized access or compromised card information.

In the Xapo Bank app, you can easily track your limits. It shows the default maximum limits set by Xapo Bank for each card type, as well as the personalized daily limits you’ve set for each card. You can also see how much of your daily limit you’ve used for each card in real-time.

Xapo Supported Countries

Xapo Bank allows you to open a non-resident account even if you are not living in Gibraltar. The bank accepts citizens from Europe, Africa, Asia, and Latin America. Some of the supported countries include Netherlands, Canada, Germany, UK, Iceland, Singapore, Japan, Saudi Arabia, Hong Kong, UAE, Brazil, Bangladesh, India, Tanzania, South Africa, Kenya, and more.

Is Xapo available in the US? US citizens are not able to apply for Xapo Bank account.

Xapo Fees

Xapo has a membership fee. However, you will have a 30-day free trial period to enjoy full benefits immediately and pay later. This means after opening your account, you will have 30 days to deposit a minimum of $150 for annual fee or $14.99 monthly fee. It can be done either in US dollars or its equivalent in bitcoin converted at the time of billing. This deposit covers your first annual $150 fee. The fee covers your debit card creation, delivery and 1 free replacement card in a year. Additional replacement card in a year is 25 USD.

Xapo bitcoin bank transaction fees for outgoing transactions from your Xapo wallet to an external wallet are determined in real-time and displayed on the confirmation screen. Incoming bitcoin transactions to your Xapo Wallet that are equal to or less than BTC 0.00000816 will incur a special processing fee of BTC 0.00000544. This fee will be automatically deducted from the transaction. Xapo does not charge a fee for Lightning Network payments.

Is Xapo Safe? Is Xapo Legit?

Xapo is a regulated bank with both a VASP (Virtual Assets Service Provider) and banking license. It is overseen by the Gibraltar Financial Services Commission (GFSC). Its fiat services are protected by the Gibraltar Deposit Guarantee Scheme (GDGS). You do not need to be a Gibraltar resident to benefit from the GDGS. This ensures the safety of your US dollars up to the equivalent of €100,000 in the event of any issues with Xapo Bank.

With enhanced security measures such as PIN verification, biometric, 2FA, and a 48-hour transfer delay, the balances in your Bitcoin vault remain completely segregated from your Bitcoin wallet, savings account, and card. You also get instant notifications for all transactions, including card usage and account activity.

Is Xapo Best Bitcoin Bank?

Whether Xapo is the “best” bank for bitcoin depends largely on your individual needs and priorities. While the bank offers a unique blend of features like a combined USD/bitcoin account, competitive interest rates, and a bitcoin debit card, there are also some limitations to consider.

If you are seeking a comprehensive solution for managing both your fiat and bitcoin holdings, Xapo presents a good option. The ability to earn interest on both currencies, spend bitcoin through the debit card, and access features like the Lightning Network for faster transactions are all significant advantages. Additionally, Xapo’s regulated status and deposit protection scheme provide peace of mind.

However, the annual fee, potential conversion fees, and limited geographic availability might be drawbacks for some. Users primarily interested in basic bitcoin storage or trading might find better value elsewhere. In the end, you need to carefully weigh Xapo’s unique offerings against your specific needs and preferences before making a decision.

Xapo Alternatives

More Information

Additional information

Bitcoin Only

Supported Countries

Worldwide

Supported Languages

,

Year Launched

2013

Headquarters

Gibraltar

Supported Fiat Currencies

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