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Yes there is a small compound, but I'm not calculating that. Thats the diffeence between APR and APY :)

The claimed HBD interst goes towards the savings balance, increasing the base so if it is not withdrawn it acts as compounding, the exact math for 1000 goes like this: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