If you’re deciding on opening a savings account, it’s important to know how interest on savings accounts works! This can help you earn as much as possible on the money that you want to save!
Continue reading below to see how much you can earn if you decide to deposit $1,000 on your savings account.
How Much Interest You Will Earn On $1,000?
| Rate | 1 Year | 10 Years | 20 Years |
|---|---|---|---|
| 0.00% | $1,000 | $1,000 | $1,000 |
| 0.25% | $1,003 | $1,025 | $1,051 |
| 0.50% | $1,005 | $1,051 | $1,105 |
| 0.75% | $1,008 | $1,078 | $1,161 |
| 1.00% | $1,010 | $1,105 | $1,220 |
| 1.25% | $1,013 | $1,132 | $1,282 |
| 1.50% | $1,015 | $1,161 | $1,347 |
| 1.75% | $1,018 | $1,189 | $1,415 |
| 2.00% | $1,020 | $1,219 | $1,486 |
| 2.25% | $1,023 | $1,249 | $1,561 |
| 2.50% | $1,025 | $1,280 | $1,639 |
| 2.75% | $1,028 | $1,312 | $1,720 |
| 3.00% | $1,030 | $1,344 | $1,806 |
| 3.25% | $1,033 | $1,377 | $1,896 |
| 3.50% | $1,035 | $1,411 | $1,990 |
| 3.75% | $1,038 | $1,445 | $2,088 |
| 4.00% | $1,040 | $1,480 | $2,191 |
| 4.25% | $1,043 | $1,516 | $2,299 |
| 4.50% | $1,045 | $1,553 | $2,412 |
| 4.75% | $1,048 | $1,591 | $2,530 |
| 5.00% | $1,050 | $1,629 | $2,653 |
| 5.25% | $1,053 | $1,668 | $2,783 |
| 5.50% | $1,055 | $1,708 | $2,918 |
| 5.75% | $1,058 | $1,749 | $3,059 |
| 6.00% | $1,060 | $1,791 | $3,207 |
| 6.25% | $1,063 | $1,834 | $3,362 |
| 6.50% | $1,065 | $1,877 | $3,524 |
| 6.75% | $1,068 | $1,922 | $3,693 |
| 7.00% | $1,070 | $1,967 | $3,870 |
| 7.25% | $1,073 | $2,014 | $4,055 |
| 7.50% | $1,075 | $2,061 | $4,248 |
| 7.75% | $1,078 | $2,109 | $4,450 |
| 8.00% | $1,080 | $2,159 | $4,661 |
| 8.25% | $1,083 | $2,209 | $4,882 |
| 8.50% | $1,085 | $2,261 | $5,112 |
| 8.75% | $1,088 | $2,314 | $5,353 |
| 9.00% | $1,090 | $2,367 | $5,604 |
| 9.25% | $1,093 | $2,422 | $5,867 |
| 9.50% | $1,095 | $2,478 | $6,142 |
| 9.75% | $1,098 | $2,535 | $6,428 |
| 10.00% | $1,100 | $2,594 | $6,727 |
| 10.25% | $1,103 | $2,653 | $7,040 |
| 10.50% | $1,105 | $2,714 | $7,366 |
| 10.75% | $1,108 | $2,776 | $7,707 |
| 11.00% | $1,110 | $2,839 | $8,062 |
| 11.25% | $1,113 | $2,904 | $8,433 |
| 11.50% | $1,115 | $2,970 | $8,821 |
| 11.75% | $1,118 | $3,037 | $9,225 |
| 12.00% | $1,120 | $3,106 | $9,646 |
| 12.25% | $1,123 | $3,176 | $10,086 |
| 12.50% | $1,125 | $3,247 | $10,545 |
| 12.75% | $1,128 | $3,320 | $11,024 |
| 13.00% | $1,130 | $3,395 | $11,523 |
| 13.25% | $1,133 | $3,470 | $12,044 |
| 13.50% | $1,135 | $3,548 | $12,587 |
| 13.75% | $1,138 | $3,627 | $13,153 |
| 14.00% | $1,140 | $3,707 | $13,743 |
| 14.25% | $1,143 | $3,789 | $14,359 |
| 14.50% | $1,145 | $3,873 | $15,001 |
| 14.75% | $1,148 | $3,958 | $15,669 |
| 15.00% | $1,150 | $4,046 | $16,367 |
Savings Accounts Interest
When you borrow money, it comes it interest. So when it’s time to pay it back, an interest is also included in addition to the original amount that was borrowed.
So when you deposit you money into a savings account, the bank is borrowing your money. They’re loaning your money to borrowers and in return, it pays you interest for letting it use your money.
How is interest calculated?
The formula for calculating the interest you’ll earn from a savings account is as follows:
I = P x R x T
- I = Interest. This is the amount of money paid to you by the bank.
- P = Principal. This represents the sum you deposited into your account.
- R = Rate. This is the annual interest rate offered by the bank.
- T = Time. Since we are considering an annual interest rate, time in this case
How much interest does $10,000 earn?
| Rate | 1 Year | 10 Years | 20 Years |
|---|---|---|---|
| 0.00% | $10,000 | $10,000 | $10,000 |
| 0.25% | $10,025 | $10,253 | $10,512 |
| 0.50% | $10,050 | $10,511 | $11,049 |
| 0.75% | $10,075 | $10,776 | $11,612 |
| 1.00% | $10,100 | $11,046 | $12,202 |
| 1.25% | $10,125 | $11,323 | $12,820 |
| 1.50% | $10,150 | $11,605 | $13,469 |
| 1.75% | $10,175 | $11,894 | $14,148 |
| 2.00% | $10,200 | $12,190 | $14,859 |
| 2.25% | $10,225 | $12,492 | $15,605 |
| 2.50% | $10,250 | $12,801 | $16,386 |
| 2.75% | $10,275 | $13,117 | $17,204 |
| 3.00% | $10,300 | $13,439 | $18,061 |
| 3.25% | $10,325 | $13,769 | $18,958 |
| 3.50% | $10,350 | $14,106 | $19,898 |
| 3.75% | $10,375 | $14,450 | $20,882 |
| 4.00% | $10,400 | $14,802 | $21,911 |
| 4.25% | $10,425 | $15,162 | $22,989 |
| 4.50% | $10,450 | $15,530 | $24,117 |
| 4.75% | $10,475 | $15,905 | $25,298 |
| 5.00% | $10,500 | $16,289 | $26,533 |
| 5.25% | $10,525 | $16,681 | $27,825 |
| 5.50% | $10,550 | $17,081 | $29,178 |
| 5.75% | $10,575 | $17,491 | $30,592 |
| 6.00% | $10,600 | $17,908 | $32,071 |
| 6.25% | $10,625 | $18,335 | $33,619 |
| 6.50% | $10,650 | $18,771 | $35,236 |
| 6.75% | $10,675 | $19,217 | $36,928 |
| 7.00% | $10,700 | $19,672 | $38,697 |
| 7.25% | $10,725 | $20,136 | $40,546 |
| 7.50% | $10,750 | $20,610 | $42,479 |
| 7.75% | $10,775 | $21,095 | $44,499 |
| 8.00% | $10,800 | $21,589 | $46,610 |
| 8.25% | $10,825 | $22,094 | $48,816 |
| 8.50% | $10,850 | $22,610 | $51,120 |
| 8.75% | $10,875 | $23,136 | $53,529 |
| 9.00% | $10,900 | $23,674 | $56,044 |
| 9.25% | $10,925 | $24,222 | $58,672 |
| 9.50% | $10,950 | $24,782 | $61,416 |
| 9.75% | $10,975 | $25,354 | $64,282 |
| 10.00% | $11,000 | $25,937 | $67,275 |
| 10.25% | $11,025 | $26,533 | $70,400 |
| 10.50% | $11,050 | $27,141 | $73,662 |
| 10.75% | $11,075 | $27,761 | $77,068 |
| 11.00% | $11,100 | $28,394 | $80,623 |
| 11.25% | $11,125 | $29,040 | $84,334 |
| 11.50% | $11,150 | $29,699 | $88,206 |
| 11.75% | $11,175 | $30,372 | $92,247 |
| 12.00% | $11,200 | $31,058 | $96,463 |
| 12.25% | $11,225 | $31,759 | $100,862 |
| 12.50% | $11,250 | $32,473 | $105,451 |
| 12.75% | $11,275 | $33,202 | $110,238 |
| 13.00% | $11,300 | $33,946 | $115,231 |
| 13.25% | $11,325 | $34,704 | $120,438 |
| 13.50% | $11,350 | $35,478 | $125,869 |
| 13.75% | $11,375 | $36,267 | $131,531 |
| 14.00% | $11,400 | $37,072 | $137,435 |
| 14.25% | $11,425 | $37,893 | $143,590 |
| 14.50% | $11,450 | $38,731 | $150,006 |
| 14.75% | $11,475 | $39,585 | $156,695 |
| 15.00% | $11,500 | $40,456 | $163,665 |
How Simple Interest Works
Simple interest is when the interest is paid on the principal you initially deposit. The formula we shared above calculates simple interest.
For example, accounts like certificates of deposit (CDs) with specific brokers, pay a simple interest rate. But, please note when you’re choosing where to keep your money somewhere, you should consider an account that pays you in compound interest instead.
How Compound Interest Works
Most savings account use compound interest, it’s when you earn interest on the entered that you earned the previous month or day, in addition to the interest your earn on your principal.
Compounding can work to your advantage as your savings and investments grow over time—or against you if you’re paying off debt.
Savings Accounts
A savings account makes the money easily available to you not only that it also serves as an emergency fund. Having an emergency fund can also help you stay out of debt, or at least reduce the amount you would need to put on a credit card in an emergency.
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Bottom Line
It’s important to set aside little money for an emergency especially when you’re putting it into a savings account. Compound interest, combined with regular contributions, can add up to a decent emergency fund!
For more options, see our list of the latest interest bearing accounts!
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