This is pretty awesome. So let's say I put 1000 HBD into the savings for January and the interest rate is 12%. Does this mean I get 120 HBD paid out to me in February? Or am I missing something? Might sound like a dumb question but financial stuff confuses me sometimes lol.
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It is an APY.
You would get 12 HBD for the month of January. However, you start Fed with 1012 HBD meaning you earn 12% on that. That means your payout for Feb would be 10.12 HBD (not exactly since Feb only has 28 days).
Then you start market with 1024.12 HBD and get a payout of 12.28 in March.
As you can see, the amount paid keeps going up each month that you claim your HBD. This is the power of compounding.
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No, 12% is annual, not monthly. So 1000 HBD would earn 10 HBD a month.
Right, makes sense. Thank you for the clarification :)