Interest Payments

The interest feature in Dragon's Hoard is a powerful tool to teach your child one of the most important concepts in finance: compound interest. It's designed to reward saving and show them how money can grow over time, just like in a real bank account.

How Interest is Calculated

The app uses a method that mirrors real-world banking to provide a realistic and educational experience.

• Compounded Daily: Each day, the app calculates a small amount of interest based on the total balance in the hoard at the end of the previous day.
• Posted Monthly: To keep the transaction list clean and easy to read, all the small amounts of daily interest are saved up. On the 1st of every month, the total amount of interest earned during the previous month is deposited into the hoard as a single transaction.

This process ensures that as your child's hoard grows, the amount of interest it earns also grows, demonstrating the power of saving.

Important: This is a Feature, Not a Real Payment

It is essential to understand that the Dragon's Hoard app does not pay any real money.

The interest feature is a simulation to help you reward your child for saving. When the app deposits "Interest Earned" into your child's hoard, it is simply adding a positive number to their balance. The app is keeping a record that you, the parent, now owe that interest amount to your child.

Think of it as an automated IOU. The app is just doing the math for you so you can easily reward your child's good savings habits.

How to Set the Interest Rate

You have full control over the interest rate.

1. Log in to your parent account and open the Settings menu by clicking the gear icon.
2. Find the field labeled "Annual Interest Rate (%)".
3. You can set any rate you like. The default is 5%.

The rate you set here will be used for all future daily interest calculations.