How much interest will I get on $1000 a year in a savings account?
If you make a deposit of $1,000 into an account that offers a 1% interest per year, you'll have a total of $1,010 by the end of the year. That's how simple interest paid on the principal works. However, money in the best savings accounts earns compound interest. To calculate the compound interest, you have to add all accumulated interest to the principal.