How much does $1,000 earn at 5% APY with daily compounding for 10 years?

$1,000 at a fixed 5% effective annual yield grows to $1,629 over 10 years, earning $629. Because APY already reflects compounding, its equivalent daily rate reproduces 5% APY rather than increasing it again.

For effective APY a = 0.0500, the equivalent daily rate is d = (1 + a)^(1/365) − 1 = 0.00013368. Then A = P × (1 + d)^(365 × t) = P × (1 + a)^t. For P = $1,000 and t = 10, the projected balance is $1,629.

Is 5% APY realistic in 2026?

Compare 5% with the current provider APY and account terms. A HYSA rate is variable, while a CD rate generally applies for its stated term; review the live disclosure before committing cash.

Does daily compounding actually matter vs monthly?

This scenario starts with a quoted APY, which already reflects the account rate and compounding frequency. Converting it to an equivalent daily rate preserves the same annual yield; it does not add a second compounding uplift. To compare frequencies, start with the same nominal APR and calculate the effective APY for each frequency.

Daily compound scenario · Verified 2026-10-12

$1,000 at 5% APY daily compound for 10 years

Grows to $1,629. You earn $629 in interest at an effective APY of 5%.

Final balance

$1,629

Interest earned

$629

Effective APY

Quick context

Set-and-forget micro-savings.

How this number was calculated

The input is an effective annual percentage yield (APY). The equivalent daily rate preserves that annual yield over 365 periods:

A = P × (1 + APY)^t

where:
  P = $1,000          (principal)
  APY = 0.0500          (effective annual yield as decimal)
  n = 365                  (compounding periods per year — daily)
  t = 10                   (years)

Equivalent daily rate d = (1 + APY)^(1/365) − 1 = 0.00013368

Final balance = $1,000 × (1 + 0.00013368)^3650
              = $1,629

Interest earned = $1,629 − $1,000 = $629
Effective APY = (1 + 0.00013368)^365 − 1 = 5%

The CFPB defines APY as a rate reflecting both the interest rate and compounding frequency over a 365-day period. This projection holds the stated APY constant and converts it to an equivalent daily rate; actual account day-count and crediting terms can differ. See the CFPB's Regulation DD APY definition. Want to run a different combination? Open the full calculator.

Year-by-year breakdown

Year	Interest earned	Year-end balance
1	$50	$1,050
2	$53	$1,103
3	$55	$1,158
4	$58	$1,216
5	$61	$1,276
6	$64	$1,340
7	$67	$1,407
8	$70	$1,477
9	$74	$1,551
10	$78	$1,629

Related daily-compound scenarios

$5,000 at 5% APY daily compound for 5 years

→ $6,381 (5 years at 5%)

$10,000 at 5% APY daily compound for 1 year

→ $10,500 (1 year at 5%)

$10,000 at 5% APY daily compound for 10 years

→ $16,289 (10 years at 5%)

$10,000 at 4.5% APY daily compound for 5 years

→ $12,462 (5 years at 4.5%)

Try different inputs

Full daily compound interest calculator

Change principal, APY, or years to model your exact HYSA, CD, or money market scenario. Visual chart and year-by-year breakdown included.

Open the calculator →

Educational tool. APY rates fluctuate with Federal Reserve policy and the rate environment; verify the current rate at your bank's product page before relying on this projection. Past rates do not guarantee future rates. Verified 2026-10-12.