The Best Banks With Compound Interest Accounts 2023. A money market account is another type of savings account that typically pays higher interest than a standard savings account. For example, if you have $5,000 in the bank and earn 1% interest, your account balance will be $5,050 at the end of the year.
Compound interest builds on the principal balance plus accrued interest. (so meta.) in other words, you earn interest on both your initial balance—called the principal—and the interest that's added to the balance over time. Web compound interest example:
