1. What is the Marcus Savings Calculator?

The Goldman Sachs Marcus Calculator estimates the growth of savings or CD accounts using daily compounding interest. It helps predict how your money will grow in high-yield savings accounts like those offered by Marcus by Goldman Sachs.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (decimal)
• \( t \) — Time in years

Explanation: The formula calculates daily compounding (365 times per year) which is how Marcus savings accounts accrue interest.

3. Importance of Compound Interest

Details: Daily compounding means interest is calculated on both the initial principal and the accumulated interest from previous periods, leading to faster growth than simple interest.

4. Using the Calculator

Tips: Enter the initial deposit amount, the APY (Annual Percentage Yield) rate, and the time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does Marcus compound interest?
A: Marcus compounds interest daily and credits it to your account monthly, which maximizes your earnings.

Q2: What's the difference between APR and APY?
A: APR doesn't account for compounding, while APY does. Marcus displays APY to show the true earning potential.

Q3: Are there fees that affect the calculation?
A: Marcus has no account fees, so the calculation represents actual growth (minus taxes).

Q4: How often can I expect interest payments?
A: Marcus pays interest monthly, though it compounds daily as shown in the formula.

Q5: Does this calculator work for CDs too?
A: Yes, Marcus CDs also use daily compounding, though early withdrawal penalties may apply.