Is HBD a good alternative for your savings account?
0.11 % interest on savings accounts in Belgium
Belgium has a minimum intrest rate on savings accounts of 0.11 %, which is of course less than peanuts, if you take into account that currently the inflation in the Eurozone is just shy of 5 %.
So, people search for alternatives and they are very right to do so. Investing in the stock market and crypto is good. But I have always learned to have a little bit aside that is always available, for unexpected costs. So, I was thinking, would putting my savings into HBD be a good idea?
Well, the answer is not simple. First of all, HBD is not stable at 1 USD yet, it has been lower than 1 USD most of the time the last few months. So, that is a risk you have to take into account, especially if you need it quickly, there is no time to wait until it is higher... Second, the waiting time to get it released from your Hive Backed Dollar savings account is 3 days, so, getting it back really fast to buy a new lawn mower when it broke down, will have to wait at least 3 days.
But of course, there are good sides to it too, even though it is below 1 USD, it is quite stable between 0.95 and 0.98 USD. And then the best part, you get an interest of 12 % per year, that is payed out monthly. So that is beating inflation by a mile.
Compound interest
These things all have to be taken into account, and then you have weigh out the downsides against the upsides. And of course there is no government that is backing your money like we have in Belgium for when the bank goes bankrupt, but that is only an insurance on paper, as our country is also bankrupt.
I am really considering to put in some of my savings into HBD savings, as this intrest rate is just too appealing. 5000 USD brings you 50 USD of interest monthly, which once again will bring in extra intrest the next month. That's what we call compounding, and as Albert Einstein said it, earn it, don't pay it!
So my opinion is, it is sure worth to put in some of your savings, if you can spare them for three days...
Sincerely,
Pele23
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HBD is absolutely the best alternative. With 12% APY and compounding, it really beats any savings account.
I agree. Nowadays I put all of my HBD into savings. Nowadays I have more than $550 HBD in savings (currently $556.873 HBD). According to PeakD, the estimated HBD interest for 2021 December will be $3.73 HBD in my wallet. We will soon see. The claim will be in three days.
Merry Christmas. Have a nice day and have a nice weekend.
All the best. Greetings and much love from Hungary.
Amazing how the recent rate increase is much higher than many savings accounts around the world are paying.
Things are starting to come together. We will see what transpires over the next year. A lot still left to do with HBD. That is why I keep writing so many posts about them.
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Well, I can't agree more, I am really looking forward to what is going to happen on here in 2022! I will be on the front row...
More eyes on Hbd is healthy for the blockchain
That way Hive will be a true deflationary token
With supply and demand.
!BEER
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It will squeeze Hive upwards, by definition, extremely smart move!
View or trade
BEER.Hey @pele23, here is a little bit of
BEERfrom @pouchon for you. Enjoy it!Learn how to earn FREE BEER each day by staking your
BEER.Yes a wise move as this is going to make a big difference. Banks offer shrapnel compared to what we get on here and this could be what Hive needs to get traction in price. Next year is looking great.
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12%? Seriously HEX pays 40% plus 10000X in 2 years! Beat that !
HBD is ticking all the boxes. As you say. If you don't need it and can wait 3 days it's a no brainer.
12% is amazing for such a secure and virtually risk free investment. 👍
I've started putting my post payouts in savings..
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