City-Data Forum Please explain what this percentage means?
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06-28-2019, 09:50 PM
 830 posts, read 295,336 times Reputation: 341

Quote:
 Originally Posted by thecoalman That reminds me of this video. https://www.youtube.com/watch?v=MShv_74FNWU
Not sure if my reaction was posted. Thank you, and fabulous. :-) Plus amazing. Absolutely and sheerly amazing. thank you, thank you and thank you for posting that video. Amazing. Sheerly absolutely and amazingly amazing.

06-29-2019, 04:33 AM
 39,438 posts, read 40,743,367 times Reputation: 16227
Quote:
 Originally Posted by Cindi Waters And when I went to school 2% was written as .02.
It still is and will be for eternity.

2% = 2.0% = .02

.02% = 0.02% = .0002

2.02% = .0202

Does that help? 0.02% is less than one percent, specifically it's two one hundredths of one percent.

06-29-2019, 09:44 AM
 Location: Aurora Denveralis 8,556 posts, read 3,001,676 times Reputation: 12760
Quote:
 Originally Posted by Petunia 100 That would mean \$500 earns \$36 of interest in one year, which (ignoring compounding) is 7.2%. Banks quote annual interest rates, not daily interest rates. \$500 earning .02% APR = \$0.10 interest per year. Sadly, this is more or less what brick and mortar banks have been paying for some time now.
Since the original question was completely without context, I'd say you're wrong. Interest rates down in that range tend to be on checking accounts and money market accounts, not loans, CDs or long-term instruments. They are usually daily rates, with the negligible return further crippled by limits like only being paid on the month's minimum balance, only paid in once a month, etc.

0.02% is extremely unlikely to be an APR. But as it took over a dozen posts (plus several in a now-locked cross post of the same question) to pound in the difference between a factor and a percentage, I doubt the issue will ever quite be solved.

Sub-1% returns on checking and MM are a tiny come-on to get people to feel better about leaving relatively large amounts in a demand account, which is pretty much a bad idea no matter how you slice it. Most who do so make the leap from one poorly-chosen account or bank, where they've been paying \$10-50 a month in account fees, to the magical world where certain accounts actually pay them \$3-10 a month (often with many caveats and limitations).

Completely skipping over the vast tier of consumer-optimal free accounts where the customer pays nothing, the bank makes a little from the funds, and pretty much everyone is happy.

But as the basic question that 0.02 =/= 0.02% has been answered, I don't think there's much more to say.

06-29-2019, 09:51 AM
 Location: San Antonio/Houston 37,945 posts, read 55,692,297 times Reputation: 89592
Quote:
 Originally Posted by turkeydance 0.10
^^^ Lol.....^^^

0.02% of \$ 5 = \$0.001
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06-29-2019, 11:57 AM
 8,815 posts, read 5,119,154 times Reputation: 10085
Quote:
 Originally Posted by Quietude Since the original question was completely without context, I'd say you're wrong. Interest rates down in that range tend to be on checking accounts and money market accounts, not loans, CDs or long-term instruments. They are usually daily rates, with the negligible return further crippled by limits like only being paid on the month's minimum balance, only paid in once a month, etc. 0.02% is extremely unlikely to be an APR. But as it took over a dozen posts (plus several in a now-locked cross post of the same question) to pound in the difference between a factor and a percentage, I doubt the issue will ever quite be solved. Sub-1% returns on checking and MM are a tiny come-on to get people to feel better about leaving relatively large amounts in a demand account, which is pretty much a bad idea no matter how you slice it. Most who do so make the leap from one poorly-chosen account or bank, where they've been paying \$10-50 a month in account fees, to the magical world where certain accounts actually pay them \$3-10 a month (often with many caveats and limitations). Completely skipping over the vast tier of consumer-optimal free accounts where the customer pays nothing, the bank makes a little from the funds, and pretty much everyone is happy. But as the basic question that 0.02 =/= 0.02% has been answered, I don't think there's much more to say.
Except daily rates aren't quoted. Calculated, sure, but not quoted. All quoted rates are annual, by law.

06-29-2019, 12:11 PM
 Location: Aurora Denveralis 8,556 posts, read 3,001,676 times Reputation: 12760
Quote:
 Originally Posted by Petunia 100 Except daily rates aren't quoted. Calculated, sure, but not quoted. All quoted rates are annual, by law.
Yup.

And two or three random CU sites I checked quote the "dividend rate" (of ca. 0.05%) that is "calculated daily and paid monthly" - at that rate. That this is also a 0.05 APY is pretty much irrelevant; the calculation is of dividend at 0.0005 x each daily balance.

Which is all way downstream from the OP's muddled question, anyway.

06-29-2019, 12:53 PM
 Location: Central IL 15,201 posts, read 8,504,300 times Reputation: 35558
My honest first answer would be that it's too little interest to be of interest so keep your money out of that bank!

06-29-2019, 12:59 PM
 Location: Aurora Denveralis 8,556 posts, read 3,001,676 times Reputation: 12760
Quote:
 Originally Posted by reneeh63 My honest first answer would be that it's too little interest to be of interest so keep your money out of that bank!
It's more than that - choosing a bank or account because it pays some trivial level of interest almost certainly means you are making poor money-management choices (keeping a lot of money in a demand account instead of any tier of savings or investment), or have researched your bank and account options so poorly you think you are getting something worthwhile with this option.

The trivial return is completely secondary to the suspicious terms under which it's offered.

06-29-2019, 06:18 PM
 Location: Eugene, Oregon 9,123 posts, read 2,994,022 times Reputation: 13762
Please! The correct sum for .02% of \$5.00 is 1 cent. The figure .02% is equal to 1/500th of something. It's 1/5 of 1 percent.

07-01-2019, 10:46 PM
 830 posts, read 295,336 times Reputation: 341
Well, anyway folks, there was a reason I chose that bank. And I intend to do something to change the amount of interest I'm earning. But -- now at least I KNOW what 0.02% interest is. :-) So while I enjoyed learning something, I also found it interesting how quick some of you are to insult. :-) But thanks anyway, folks! Some of your honest and respectful answers were appreciated, and even if they weren't so respectful, among the errors were a few gems. :-) So thanks, and have a real good evening, wherever you are.
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