1️⃣ What each one is

📌 Binance Simple Earn (e.g. USDC)

Function: It is a staking or lending product within the exchange, where you deposit an asset (for example, USDC) and receive interest in the same currency.

Type of rate: Variable (can change at any time).

Availability: Depending if it is Flexible (you can withdraw at any time) or Locked (fixed for X days).

Risk:

Counterparty risk (Binance).

Asset risk (USDC could lose parity if an event like the USDC–SVB incident occurs in 2023).

Not insured by state entities (although in the case of Circle's USDC, it meets all international regulations at this time making it safer than others).

📌 CDT in a bank

Function: Fixed-term deposit in local or foreign currency with agreed rate.

Type of rate: Fixed (does not change during the period).

Availability: You cannot withdraw before the maturity date without penalty.

Risk: Very low if the bank is regulated and the country has deposit insurance (in the U.S., FDIC).

The risk of the bank defaulting exists, but it is minimal in large and regulated entities.

2️⃣ Direct comparison

Feature Simple Earn

Yield: Usually higher than a traditional CDT (can exceed 3–6% annually in stablecoins, sometimes more).

Bank CDT

Yield: Typically lower (e.g. 6–10% in local currency; 1–3% in USD).

Simple Earn

Liquidity: Flexible: you can withdraw at any time if it is 'Flexible'.

Bank CDT

Locked: withdrawal at the end of the term. Withdrawal only at maturity (or with penalty).

Simple Earn

Security: Exchange and stablecoin risk. No state guarantee.

Bank CDT

Security: Banking regulation + state deposit guarantee.

Simple Earn

Volatility: If the asset is a stablecoin, almost none in theory (but risk of loss of parity).

Bank CDT

Volatility: None (same amount + interest).

Simple Earn

Fixed/variable rate: Variable, changes according to supply/demand.

Bank CDT

Fixed/variable rate: Fixed, agreed at the beginning.

3️⃣ Key points to consider

If your priority is absolute security, a CDT in a regulated bank is safer.

If you seek higher yield and accept more risk, Simple Earn in USDC can be attractive, but requires trust in Binance and the stablecoin.

In Simple Earn, interest is calculated on crypto, not local currency; if USDC loses value against your currency, your real yield may be affected.