A bank account with an initial deposit of $1,000 earns 4% annual interest, compounded quarterly. What is the balance after 3 years?

Tue, 05 May 2026 12:11:39 +0000

**How a $1,000 Bank Deposit Grows with 4% Quarterly Compounding Over 3 Years – What the Numbers Actually Show** Curious about how a modest $1,000 deposit can grow through interest? With today’s conversation around financial growth on the rise, many readers are paying close attention to how banks compound interest—especially with a 4% annual rate, counted quarterly. What does that mean for someone saving $1,000 today, and where might the numbers land in just three years? Understanding how compound interest works is key. This bank account earns 4% annual interest, but because compounding occurs each quarter, the balance strengthens in installments, accelerating growth over time. Users interested in smart, reliable savings options are naturally drawn to these clear terms—and the compounding effect turns small deposits into meaningful long-term gains. ### Why This Interest Rate Is Gaining Attention in the US