The graphs of monthly interest in the "Earn" section reflect the interest generated in a specific month. It is important to note that the generated amount may vary slightly between months due to factors such as the difference in the number of days in the month or the compounding effect. To understand the compounding effect, it is recommended to read the information provided here:
At Rand, we offer an Annual Percentage Yield (APY) of 6.50%. This means that if you deposit 100 euros, after one year, you will have exactly 106 euros. However, it is crucial to understand that this growth does not occur linearly, as interest accumulates daily and is calculated on the initial investment plus the accumulated benefits.
The term "compounding" refers to reinvesting the generated profits back into the investment. Considering this compounding process, we find that for a 6.50% APY, a daily Annual Percentage Rate (APR) of 6.29% is applied. This APR is calculated on the initial investment plus the accumulated benefits. By applying this 6.29% APR throughout the year on the investment and the generated benefits, the final total annual yield of 6.50% (APY) is obtained.