[sweeps]

First, consider opening and funding an IRA this year, since you can't participate in your company's 401(k) yet.

Regarding the APY, yes, you will have earned $38 in interest after a year on a $1,000 investment @ 3.8%. However, you will not earn $3.17 in the first month ($38 divided by 12). APY takes into account the effect of compounding, so maybe you will earn $3.12 this month, $3.13 next month, and so on until you get a total of $38 for the whole year.