A savings account earns 4% annual interest, compounded annually. If $1,000 is deposited, what will be the balance after 3 years?

Mon, 04 May 2026 03:03:53 +0000

**What Will Grow a $1,000 Deposit to $1,124.86 in 3 Years at 4% Annual Interest, Compounded Annually?** In a climate where everyday investing feels increasingly intentional—fueled by rising interest rates and shifting financial habits—many U.S. savers are turning to simple accounts with predictable returns. One of the most reliable options is a savings account earning 4% annual interest, compounded once each year. Curious about how that investment grows? Understanding compound interest helps contextualize the power of patience and consistency in growing your money. ### A Savings Account Earns 4% Annual Interest, Compounded Annually. If $1,000 Is Deposited, What Will the Balance Be After 3 Years? At 4%, compounded annually, even a $1,000 deposit demonstrates how time and consistency amplify savings. By the end of three years, the balance reaches $1,124.86—a modest but meaningful return that reflects steady, predictable growth. This figure isn’t rare; it’s a core outcome of long-term financial planning in today’s market.