A savings account earns 3% annual interest compounded quarterly. If $5000 is deposited, what is the balance after 5 years?

Thu, 30 Apr 2026 14:13:35 +0000

**Why More US Savers Are Exploring a 3% Quarterly Compound Savings Account–And How $5,000 Can Grow in 5 Years**
In a climate where everyday Americans seek smarter, safer ways to build wealth, a quietly popular tool is gaining quiet but growing attention: a savings account earning 3% annual interest, compounded quarterly. For those with $5,000 deposited, this rate creates a predictable growth path that stands out in today’s low-interest environment—fueling curiosity among users balancing inflation and long-term security. This rate isn’t new, but its relevance is rising. With the Federal Reserve maintaining elevated interest rates and many traditional savings products rising to match, this 3% compound quarterly offers a tangible way to preserve purchasing power. In a year dominated by discussions about financial health and inflation adaptation, this structure has become a practical topic among digitally engaged Americans—especially mobile users seeking reliable, low-risk options. ## How a Savings Account Earns 3% Annual Interest Compounded Quarterly—Exactly What It Means When a savings account earns 3% annual interest compounded quarterly, interest is calculated four times a year and added to the principal. This means each quarter, earnings grow on a slightly larger base—not just on the original deposit, but on previously earned interest. Over five years—20 compounding periods—small, consistent gains create meaningful growth. For $5,000 deposited, this formula transforms fixed savings into a slowly compounding asset, outliving simple interest plans by a meaningful margin.