RE: APR for HBD in Savings Dropped to 19% for a Short While. Want to know why?
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That's interesting! Good to know. So, basically, the "Estimated interest since last payment" shown by an interface like PeakD is based on the current interest, and if the interest varies, so does this estimation. It only matters the interest at the time when you claim it.
There are talks about removing backup witnesses from the equation, that way it isn't so volatile.
Maybe keeping it volatile in a short range gets people used to the idea it's not fixed at 20%.
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It also keeps track of your interest regardless of when you claim. You will get your full amount if you do it every 30 days or come back a year later.
Absolutely! It has happened to me to claim after more than 30 days, and every day is counted.
If you claim the interest every 30 days, you will get the compound interest rate, while you wait for 1 year, you will not get the compound rate for the whole year.
That is true. At 20%, if you compound monthly, it's roughly 22% APY. If you leave it for a year, it's still 20% (if the rate doesn't drop in between).