1. What is the Goldman Sachs Savings Calculator?

The Goldman Sachs Savings Calculator estimates the growth of your savings with Marcus by Goldman Sachs, which offers a high-yield savings account with competitive APY (Annual Percentage Yield) using daily compounding interest.

2. How Does the Calculator Work?

The calculator uses the daily compounding interest formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal investment amount ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.0365 for 3.65% APY)
• \( t \) — Time the money is invested for (years)

Explanation: The formula calculates how much your savings will grow when interest is compounded daily (added to the principal each day).

3. Importance of Daily Compounding

Details: Daily compounding means you earn interest on your interest every day, which can significantly increase your savings over time compared to simple interest or less frequent compounding.

4. Using the Calculator

Tips: Enter your initial deposit amount in dollars, the number of years you plan to save, and the annual interest rate (default is 0.0365 for 3.65% APY). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Marcus by Goldman Sachs?
A: Marcus offers high-yield online savings accounts with competitive interest rates and no fees.

Q2: How often is interest paid?
A: Interest is compounded daily and credited to your account monthly.

Q3: Is there a minimum balance required?
A: No minimum deposit is required to open a Marcus savings account.

Q4: Are there any fees?
A: Marcus has no account fees or minimum balance fees.

Q5: How does this compare to regular savings accounts?
A: High-yield savings accounts typically offer much higher interest rates than traditional bank savings accounts.