Frequently Asked Questions

Version 1.0 Last updated 19th of November 2021
What is Crescent?

Crescent is a wealth-building finance app making high-yield interest accessible to all. We offer 100x higher interest rates on your money with up to 6% APY, no minimums, no hidden fees, no nonsense. You can increase your interest by activating boosts & support the causes you care about with our Social Impact feature, paid out of our pocket, not yours.

How long does it take to verify my account?

Accounts are typically verified within minutes. During periods of increased onboarding demand, this may take up to 7 days.

What does crypto-powered mean?

Your deposits are instantly converted to US Dollar Coin (USDC). 1 USDC = $1 Dollar. We build on top of USDC technology that enables higher interest rates, faster transfers, and no fees.

How does Crescent generate yield?

All deposits in Crescent are converted into US Dollar Coin (USDC) and lent out to regulated institutions. Because of significant borrowing demand for USDC, institutions are willing to pay higher interest rates for access. Crescent converts that demand into higher interest for our users.

Is my money safe with Crescent?

Yes. All assets deposited in Crescent are lent out in partnership with trusted and regulated institutions. All loans are overcollateralized or "covered", meaning our partners hold additional reserves (at least 125% of the principal) that protects your principal deposit value.*

How long do withdrawals take?

You can withdraw your funds at any time from the home screen. Withdrawals take 1-5 days before your funds arrive in your bank account. Most arrive within 3 days.

How does Crescent make money?

While many institutions make money from charging account fees, we do not. Instead, Crescent takes a small percentage of the earnings from our lending partners, and passes the rest on to you. This means our Crescent members get access to 100x higher interest rates without fees. Or more simply put — we earn, when you earn.

Is Crescent Save FDIC or SIPC insured?

Keeping your money safe and secure is our top priority. As with all digital assets that empower better tools and services, funds on Crescent are not FDIC or SIPC insured. The product is not zero-risk, however, here is how we ensure the risks are as low as possible.

How secure is Crescent?

Safety and security is our top priority for customers. Our team works hard to make sure all information and transactions are as secure as possible.

At the account level, we encrypt all user data using the AES-256 standard and protect accounts at the highest level with a personal PIN number and two-factor authentication (2FA). This ensures that access to your account is as secure as other finance and payment apps such as Venmo or Robinhood. For additional user safety, we stick to stringent KYC standards to avoid fraudulent users and regularly audit activity on the app to flag suspicious behavior.

On the account side, we manage all bank connections securely with Plaid, the industry leader in bank integrations. Whenever you add a bank account or card to Crescent, Plaid facilitates the connection through its secure servers. This is the same banking integration used by hundreds of financial services including Venmo and American Express.

How do boosts work?

Complete Missions within the app to unlock Boosts and earn more interest for free. By completing steps such as referring friends, surpassing a deposit milestone, or automating your deposits, you can temporarily boost your interest rate.

Tip: Boosts can be stacked and activated at the same time.

What is Annual Percentage Yield (APY)?

Annual Percentage Yield is the amount of interest you earn per year by simply depositing funds on Crescent.

What is Social Impact?

Social Impact is a feature that allocates a portion of Crescent's earnings to the cause of your choice, designated by our users. All Crescent members can activate social impact within the app by selecting an organization and tapping the "activate" button.

How does the waitlist work?

Join the waitlist here : https://www.crescent.app/

Once signed up, waitlist members can complete the Founder's Series Missions to gain early access to the app, and unlock limited edition rewards like a 6% APY Boost once they gain access to the app, Crescent merch, and other rewards.

When will Crescent be available in my state?

Crescent will launch in early 2022. We plan to onboard waitlisted users before our full launch.

Why do I have to complete a KYC?

Because Crescent is a regulated financial company, we must comply with all Know Your Customer (KYC) and Anti-Money Laundering (AML) best practices. All data submitted during this process is processed securely.

How long does it take to verify my account?

Accounts are typically verified within minutes. During periods of increased onboarding demand, this may take up to 7 days.

If you are applying for a business account, verification will take 3-5 buss days after all info has been submitted.

What does crypto-powered mean?

Your deposits are instantly converted to US Dollar Coin (USDC). 1 USDC = $1 Dollar. We build on top of USDC technology that enables higher interest rates, faster transfers, and no fees.

How long do withdrawals take?

You can withdraw your funds at any time from the dashboard home screen. Withdrawals take 1-3 business days to arrive in your bank account. In practice, funds often arrive by the next business day.

How does Crescent make money?

While many institutions make money from charging account fees, we do not. Instead, Crescent takes a small percentage of the earnings from our lending partners, and passes the rest on to you. This means our Crescent members get access to 100x higher interest rates without fees. Or more simply put — we earn, when you earn.

Is this FDIC or SIPC insured?

Funds allocated to our 1% yield option are FDIC insured up to $3.5 million.

Funds allocated to our 4% USDC-backed yield option are not FDIC or SIPC insured, as loans are conducted outside of bank and brokerage accounts. All loans are to well-vetted institutions with 150% collateral and strict credit requirements. Crescent’s lending partners maintain coverage and collateral on all actively lent assets (similar to the securities lending industry).

How secure is Crescent?

Safety and security is our top priority for customers. Our team works hard to make sure all information and transactions are as secure as possible.

At the account level, we encrypt all user data using the AES-256 standard and protect accounts at the highest level with a personal PIN number and two-factor authentication (2FA). This ensures that access to your account is as secure as other finance and payment apps such as Venmo or Robinhood. For additional user safety, we stick to stringent KYC standards to avoid fraudulent users and regularly audit activity on the app to flag suspicious behavior.

On the account side, we manage all bank connections securely with Plaid, the industry leader in bank integrations. Whenever you add a bank account or card to Crescent, Plaid facilitates the connection through its secure servers. This is the same banking integration used by hundreds of financial services including Venmo and American Express.

What is Annual Percentage Yield (APY)?

Annual Percentage Yield (APY) is the amount of interest you earn per year by simply depositing funds on Crescent.

Why do I have to complete a KYC?

As a regulated financial company, Crescent must comply with all Know Your Customer (KYC) and Anti-Money Laundering (AML) best practices. All data submitted during this process is processed securely.

How is the interest paid out categorized, what are the tax implications, and what is the compounding frequency?

Crescent accrues interest every second and automatically retains it for compounding. Interest paid is categorized as ordinary income. Monthly account statements are sent via email and are available on the dashboard. Crescent issues 1099s to all clients at the end of each year.

What are the current yield options?

We currently have two yield opportunities:

  • A zero-risk, 1% APY FDIC insured yield option
  • A 4% USDC-backed yield option
Who can use Crescent?

Our 4% APY USDC-backed yield option is currently only available for accredited investors and institutions. Our 1% APY FDIC Insured yield option is available to all clients. We are actively working to make all of our products accessible to non-accredited individuals and businesses.

How do I fund my account?

You can fund your account through ACH, wire transfer, or USDC deposits. Crescent does not charge wire transfer fees.

How secure is my account?

At Crescent, your account security is our top priority. We work with each of our clients to ensure your unique security and compliance needs are met, especially when it comes to deposits and withdrawals. In addition, our internal systems have passed third-party penetration testing to ensure your data is safe.