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<h1>Is it a good option?</h1>
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12% is a very nice return on a savings account. If my bank offered it to me I would be ecstatic. It is not where I would put the majority of my money as there are far higher payouts but it is a good option for a portion of it.

I sold my house before the xmas and the balance from that is sitting in my bank account right now. It's a significant amount and it earning the grand total of 0.55% APR for my troubles. That is pathethic and it is on my list to find a better option for that money.

I would jump at the thought of a 12% return for that money. It would be amazing. I know that i could move some of that money into crypto but to be honest, I have enough of my finances tied up in the game and don't want everything in the system. 

It's good to have a spread for your funds. That money is for the next house in a few years and needs to be kept in the right place to be flexible but not raise any red flags.

HBD is going to be another part of that spread. My end goal is to have 250K in savings for a guaranteed return that would be enough to live on. A lot of crypto is very volatile so it's good to have some stable returns as well.

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<h3>Printing money or no?</h3>
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It is and it isn't. While 12% is a good return it is somewhat toned down by inflation. You need about 6% APR to beat the rate of inflation so 12% at least means that you are staying ahead of the curve.

HBD savings are not printing money but they are making you a profit. It's still a lot better than keeping the money in a bank where it earns nothing in return and loses value as it does so.

Money sitting there is money wasted. HBD is a safe way build a savings account with very little risk. As long as HIVE stays going and growing then you will be earning an interest payment every month. The risk is always there that the system will fold but every year makes this less and less likely.



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<h3>Compounding the HBD interest.</h3>
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Since I want this account to grow, I won't be removing anything from savings for the near future and instead will let the monthly interest payments add up and keep growing.

Taking all of my earned HBD and putting it into savings gives me on average $10 per day going into the account.

My starting balance as of today is $2500 so lets see where that leaves us. 

*How long would it take to reach that 250K at my current trajectory?*

$2500 with $300 added monthly and compounding monthly at 12% APR.

Year 1. $6621
Year 2. $11266
Year 5. $29042
Year 10. $77262
Year 15. $164863
Year 18. $248804


Now I can't wait 18 years to reach my goal so I'm hoping to see Hive have a few moonshots between now and then to speed things up but at least there is a pathway to reach my goal. Regardless of how long it takes.

Meanwhile, the money in my bank account will still be worth almost exactly the same in 18 years as it does today if not invested.

12% is looking pretty good right now.


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