HBD Interest Thoughts

Like many people here on Hive, I am contributing a decent amount of my Hive earnings to my HBD Savings account so that I can benefit from that 20% interest rate that it offers. I did run into something the other day that got me a little confused and I've read some of the posts on HBD and the HBD interest calculation but it still confuses me a little bit.. Let me try to show what I'm referring to.

So I've been keeping rough track of my HBD savings mentally, because it can get a little tricky to keep track of it otherwise currently with the tools for data analytics stuff here on Hive that I can figure out but that's besides the point.

I remember that in the period of February I had started with about 250 HBD in my savings account here on this account. I figured with 20% interest and if I don't deposit a single additional HBD I will at least get 5 HBD so that's not bad! I certainly didn't plan on stopping there though, as I was planning on depositing quite a bit more HBD if I could manage it with the little plan of formulation that I've got going on in my head right now.

So I started depositing the funds into the account, remembering that 250 is about where I started give or take a few HBD above that number but likely close to it. What I noticed at the end of the 30 day timeframe though from where I was constantly increasing the deposit number was that the amount I collected at the end of the 30 days didn't change as much as I thought it would, despite me allocating more HBD every week into the account.

By the time it was time to collect my HBD interest for the 30 day period in which I was holding it, the interest I was able to claim was only 5.159 but at the time I had 315 HBD in the savings account. Does that mean that as you deposit more HBD, such as 1 or 2 per day or a little bit more, but not a tiny fraction of an amount, that the value of the interest doesn't get altered at all? That seems a little confusing to me, as if you deposit more money into a bank account in the middle of the month your value you earn is going to be a little bit higher at least for the partial calculation for the remaining days prior to the interest being distributed to you, in my experience at least.

I wasn't expecting to earn up to 6+ HBD for the month but I thought, since the month started at around 250 HBD (again, could have been 255 for all I remember but it was definitely above 250, not 250 on the dot) and ended at 315 there was quite a bit of positive fluctuation of the HBD into the account and I was almost sure that I was going to make 5.7 or a bit more instead of 5.15 which kind of seems like it reflected the starting balance only instead of the consistent inward deposits.

I guess at the end of the day it doesn't matter that much because 20% is still a really good amount of interest to be earning, considering the HBD interest I earn is far and above the interest rate if you were to deposit the equivalent amount of USD into a traditional bank. I may just be poor at math and the calculations, but wanted to see what the more technical side of the Hive and Leo community thought about this situation! I know I'll get some good links for other posts perhaps, look forward to seeing what the folks provide!

If nothing else, I have learned a little bit more through trial and error! That's the best type of learning that we can do in my opinion. I will be depositing more HBD into the account as the time goes on. As of the writing of this post I've got 350 HBD in my account so I should earn 7 HBD no matter what I do to deposit more HBD into the account. That's not a bad number if you ask me!

The other thing I guess it has taught me is one additional thing about finances, which is also crucial. We all know the term "APR" and things that get calculated monthly but I guess we tend to forget exactly what that means. When you see it in action though like I did here, you get a deeper and different understanding of how it all works!