Many people deposit tokens into Binance Earn and receive daily interest payments, but the interest just sits idle in their account. If that interest were automatically reinvested, you'd get compound returns — and over time, the difference adds up.
If you haven't registered yet, sign up for Binance to access Earn features. We recommend downloading the Binance app to check your earnings anytime.
Flexible Earn Auto-Compounding
Binance's Flexible Earn (Flexible Savings) has built-in auto-compounding. When you deposit tokens, daily interest is automatically added to your principal, and the next day's interest is calculated on the principal plus yesterday's interest. Flexible Earn doesn't require extra setup — it compounds by default.
Locked Earn
When Locked Earn products mature, interest and principal are returned to your spot wallet. If you want to reinvest, you need to manually subscribe again.
However, Binance offers an "Auto-Subscribe" feature. When enabled, the system automatically reinvests your principal plus interest into the same product upon maturity (if the product still has available quota). This achieves an effect similar to auto-compounding.
How to Enable Auto-Subscribe
Go to Binance App > Earn > find your subscribed Locked product > in the product details, find the "Auto-Subscribe" toggle > turn it on.
Some Locked products may not support auto-subscribe — check the product page for availability.
How Significant Is the Compound Effect
Say you deposit 1,000 USDT at 5% APY. Without compounding, after one year the interest is 50 USDT. With daily compounding, it's about 51.27 USDT. The difference seems small, but the larger the amount, the longer the duration, and the higher the rate, the more significant it becomes.
100,000 USDT at 10% APY: the compound vs. simple interest gap over one year is nearly 500 USDT. Over several years, it grows even larger.
Does BNB Vault Support Compounding
BNB Vault earnings are automatically distributed and reinvested daily, so it does compound. Just deposit your BNB into BNB Vault and you don't need to do anything afterward.
Important Notes
While auto-compounding is convenient, it means your funds stay locked in earn products. If you might need the money at any time, choose Flexible products over Locked ones.
Also, rates are variable. Flexible product rates can change at any time, and high rates won't last forever. Don't invest more than your risk tolerance allows just because current rates look attractive.