The claimed HBD interst goes towards the savings balance, increasing the base so if it is not withdrawn it acts as compounding, the exact math for 1000 goes like this:
- month 1: base 1000, interest 16.43
- month 2: base 1016.43, interest 16.71
- month 3: base 1033.14, interest 16.98
Total 1050.12