How does $1000 grow in a high-interest savings account?

Savings stash of cash in wallet

When it comes to money goals, a long-term view can lead to larger returns. But why is that? Generally, a mix of compound interest and regular monthly deposits can grow an initial balance of $1000 over a long period of time.

Compound interest is one of the many tools that you can employ in your financial journey. By building up your savings in a strategic and long-term way, you can build up enough for a rainy day fund, a deposit on a home loan, or an offset account for an existing mortgage. 

$1000 at an interest rate of 4.53%

Using the highest bonus rate on the Mozo database (4.53% p.a.), we can get a good idea of how much money you’ll end up with over 10 years.    

chart of $1000 at an interest rate of 4.53%

By just letting your money sit in an account and gain interest, your savings would grow to $1571.68—that’s an additional $571.68 in interest. This is how you can get your money “working for you”. 

One way you can augment your savings further is by making regular deposits too. If you were to make a monthly deposit of $200, after 10 years your savings would grow to $31,860. 

$1000 over a longer period of time

Time is the aim of the game when it comes to compound interest. So let’s say you threw this same $1,000 in a high-interest savings account for a 30-year period. How much more interest would you gain?

$1000 over 30 year period at a rate of 4.53%

The resulting interest you would gain is $2882.35 for a total ending balance of $3882.35. If we add our monthly contributions of $200 to this calculation, we end up with a total ending balance of $156,590 with $83,590 coming from interest. 

Just keep in mind that all these calculations assume that the interest rate stays the same. Since savings accounts have variable rates, they can rise and fall depending on the economic climate. If you’d feel more comfortable locking your savings away with a fixed interest rate, then a term deposit may be more appropriate. 

Not sure if you’ve got the highest interest rate you can get on your savings account? Check out some of the providers below or hop on over to our savings account page.

Savings account comparisons on Mozo - last updated 28 February 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

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  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

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  • Hero Saver

    4.60% p.a. (for $0 to $250,001)

    1.00% p.a.(for $0 to $5,000,001)

    Yes up to $250,000

    Minimum deposit of $200 and no withdrawals in the month.

    Earn a generous variable rate on balances up to $250,001 each month you deposit at least $200 (excluding interest) on or before the last business day each month and make no withdrawals during the month. $0 account maintenance fees. Create a goal, set up regular deposits and track your progress on the Bankwest app.

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  • Reward Saver

    5.25% p.a. (for $0 to $100,000)

    0.30% p.a.(for $0 and over)

    Yes up to $250,000

    Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.

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  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

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