# What does this interest rate actually mean?

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Please help someone who doesn't understand this mathematically. :leaving: I'm looking at bank CDs. The APY for the shortest term CDs are listed as "0.40%" Is this four-tenths of one percent? Is it four percent? How would I enter this into a calculator to understand the interest rate?

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It's four tenths of one percent.

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0.40% is 4 tenth of one percent. Since a percent is one hundredth, so this means 4 thousandth.

If you have a sum of x, finding 0.4% of X would mean multiplying X by 0.004.

(which is equivalent to multiplying X by 0.4 and then dividing by 100).

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Thanks! But geez...that's really lousy. I guess I knew that, though.

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That's why my money is sitting in savings. I've finally got enough to actually get a CD but rates are so low it's just not worth it!

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That's why my money is sitting in savings. I've finally got enough to actually get a CD but rates are so low it's just not worth it!

Yeah, I hear ya. We have a saving account that has some money sitting in it. It hasn't been touched because it's an old account that was dh's before I was arround. My name is not on the account, so I can't move it, but I was going to suggest that he put it in a CD. Only it may make no difference anyhow with that interest rate. :glare:

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You could try a money market. Some of them are doing a little better than a savings account.

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