After one 12 months at a 5% APY, $1,000 would earn $50. Be aware that the quantity of curiosity earned every month might fluctuate a bit primarily based on the compounding charge, similar to how with some accounts, curiosity compounds every day, whereas some are compounded yearly. Whereas that compounding frequency impacts the underlying rate of interest, both method, a 5% APY tells you that after a 12 months, the account would develop from $1,000 to $1,050.