interest rates are usually an annual rate and accrue monthly. You seem to have applied the interest percentage of 1% to every deposit which is incorrect. Each deposit should gain that amount every year. For example, if you deposited $10 last year now it would be $10.10. If you deposited $10 2 years ago it would now be $10.201 due to the interest compounding.
Interest is usually calculated as a daily accrual of the EOD balance, then applied monthly.
Some systems will actually do the accrual daily and store the balance in a shadow account, others will just calculate the interest when it is applied.
So if you had $100,000 in your account for just one day and nothing else for the rest of the year, at 5% interest you would earn 100000 * 0.05 / 365 = $13.69