Why Move Your SBD into Savings?

Chanced upon this article from @bigdeej: Why Savings for SBD Exists (Pro Tips).

I admit I never gave much thoughts of parking SBD into my savings account before. When you check your wallet, it expressedly says that your SBD in savings will earn you...drumroll please... 0% APR (Annual Percentage Rate)!

I'm not sure what country you are from, but I do know 0% in any country in any language is not gonna gain you a lot of interests (no-pun-intended!)

Now, my understanding is that the interest rate hasn't always been 0% in the past. However, with Steem Dollar (SBD) markedly deviating from it's US Dollar peg in recent months (it's currently about 1 SBD = US$2.00), the Steem witnesses will tend to vote on lowering the interest rate to encourage people to sell any SBD they've been holding (there won't be any incentive for holding SBD in this case). The idea is that if there are more sellers and hence more supply than demand, the price of SBD would go down in the long run thereby bringing it closer to equilibrium with the US Dollar. This would explain why placing your SBDs in savings won't earn any interest at the present moment.

Conversely, if SBD were to trade lower than US$1.00 in the markets, then we should be seeing higher interest rate for keeping SBD.

So going back to the article, @bigdeej does provide a great argument!

But realize this. If an attacker did manage to gain access to your account, anything liquid is gone forever! Any STEEM and SBD will instantly be withdrawn by the attacker and you probably never will see it again! Had those funds been locked in Savings or Powered Up as Steem Power, the attacker would need you not to notice for a minimum of 3 days in order to steal any funds from you! If you plan to hodl SBD for a long period of time and do not need it liquid, placing it in Savings adds 3 days to an attacker's time before they can make off with your funds! That is a HUGE difference between instantly stealing your funds, and you noticing a withdraw you didn't make, and cancelling it and resetting your account's keys!

Very well said! It's the same reason that powering-up your Steem gives you more peace of mind because it will take 13 weeks for a hacker to steal your Steem, during which you'll hopefully notice and thwart the attempt before he gets hold of your precious Steem (i.e. by changing your passwords/private keys). In the case of moving your SBDs into savings, there'll be a similar wait time before you can withdraw it out, albeit at a shorter 3 days span. It's still better than nothing.

And so armed with this newfound realization, I've since placed some of my SBDs into savings, keeping a little bit for some irresistible punts into voting bots in the future.

Hope this post has helped you as well. Have a great Sunday!