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Old 06-26-2019, 07:29 PM
 
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If a bank offers 0.02%, what does that mean? Say I have $5 in the bank, what is 0.02% of that?
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Old 06-26-2019, 07:33 PM
 
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0.10
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Old 06-26-2019, 08:09 PM
 
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Actually if it’s really 0.02% that would be 1/10th of a cent.
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Old 06-27-2019, 04:38 AM
 
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Quote:
Originally Posted by Cindi Waters View Post
If a bank offers 0.02%, what does that mean? Say I have $5 in the bank, what is 0.02% of that?

It's two one hundredths of one percent. It can be a little confusing because it's percentage with decimal value. To get the percentage of number you multiply the number times the percentage but first you move the decimal point to the left two numbers. If it was 2% you could also show it as 2.0% percent.





5 * .02 = .1 or ten cents


For 0.02%



5 * .0002 = 0.001 or one tenth of a penny.
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Old 06-27-2019, 04:47 AM
 
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That reminds me of this video.



https://www.youtube.com/watch?v=MShv_74FNWU
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Old 06-27-2019, 11:29 AM
 
Location: Kentucky
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C'mon! 4th grade math...
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Old 06-27-2019, 11:53 AM
 
Location: Aurora Denveralis
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Neither the right question was asked nor were the answers useful.

For one thing, "a bank offering 0.02%" means it's an interest rate, and the return can't be calculated without knowing the rate period - daily, most likely, but it could be monthly.

Also, 0.02% does not mean "x 0.02," but one hundredth of that rate. It would be 0.1 cents per period on five bucks, and gains would probably be lost to rounding/minimum accrual at that level.

$500 would gain 10 cents a day, probably credited monthly, or about $3 for a month.
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Old 06-28-2019, 05:28 PM
 
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Quote:
Originally Posted by Quietude View Post
Neither the right question was asked nor were the answers useful.

For one thing, "a bank offering 0.02%" means it's an interest rate, and the return can't be calculated without knowing the rate period - daily, most likely, but it could be monthly.

Also, 0.02% does not mean "x 0.02," but one hundredth of that rate. It would be 0.1 cents per period on five bucks, and gains would probably be lost to rounding/minimum accrual at that level.

$500 would gain 10 cents a day, probably credited monthly, or about $3 for a month.
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.
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Old 06-28-2019, 09:34 PM
 
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Quote:
Originally Posted by thecoalman View Post
It's two one hundredths of one percent. It can be a little confusing because it's percentage with decimal value. To get the percentage of number you multiply the number times the percentage but first you move the decimal point to the left two numbers. If it was 2% you could also show it as 2.0% percent.





5 * .02 = .1 or ten cents


For 0.02%



5 * .0002 = 0.001 or one tenth of a penny.
OK, and I'm reading this again, because I guess (?) I forgot. So, yes, it is confusing for me because as you say, it's percentage with a decimal value. And when I went to school 2% was written as .02. Not, I suppose, as .02%. Still can't figure it. So 2% means 2% of something. So is 2% written as .02, but not .02%??? Or is it more precisely written as 0.02% in that case where it is not really 2%? I guess that is where my confusion is. If someone else has already answered the question, please excuse but maybe you can help out by answering it or pointing to the answer. Thanks.
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Old 06-28-2019, 09:36 PM
 
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Quote:
Originally Posted by Petunia 100 View Post
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.
I see that. Thanks.
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