I have opened a savings account at a credit union and deposited $100. Every month my account tells me I've received $0.02 in interest, and that my deposit dividend is 0.250% and my APY earned is 0.23% or 0.22% (it's not the same every month). Thus, after three months I've earned $0.06 and my balance is $100.06.
Please help me understand:
- 0.250% of what? Because $100 x 0.25% = $25. How am I getting $0.02 a month?
- Is this most likely a simple (as opposed to compound) interest rate? What is typical of credit unions?
- If I make additional deposits into this savings account from time to time, how can I calculate total interest earned up until today, and also up to an arbitrary point in the future, such as eight months from now? I want to do this in Google Sheets. I have a column of all my deposits, and I need a cell to calculate the sum of all my deposits plus interest earned. For example, I want one cell to calculate that $100.06 is my current balance plus interest, and I want another cell to calculate that (perhaps) $100.22 will be my balance in eight months.