1. What is the Marcus Bank High Yield Calculator?

This calculator helps you estimate the growth of your savings in a Marcus Bank high-yield savings account or CD with daily compounding interest. It uses the standard compound interest formula with daily compounding (365 times per year).

2. How Does the Calculator Work?

The calculator uses the compound 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 investment grows when interest is compounded daily (365 times per year).

3. Importance of Compound Interest

Details: Compound interest allows your savings to grow exponentially over time as you earn interest on both your principal and accumulated interest. High-yield accounts like Marcus Bank's offer significantly better returns than traditional savings accounts.

4. Using the Calculator

Tips: Enter your principal amount in dollars, annual interest rate as a decimal (e.g., 0.0365 for 3.65% APY), and time period in years. The calculator will show your projected final amount.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Marcus Bank high-yield savings rate?
A: Rates change frequently (3.65% APY as of example). Check Marcus Bank's website for current rates.

Q2: How often is interest compounded in Marcus accounts?
A: Marcus compounds interest daily and credits it to your account monthly.

Q3: Is there any difference between APY and APR?
A: Yes, APY includes compounding effects while APR does not. Always compare APY when evaluating savings accounts.

Q4: Are there any fees or minimums for Marcus accounts?
A: Marcus has no monthly fees and no minimum deposit requirements for their high-yield savings account.

Q5: How does this compare to regular savings accounts?
A: High-yield accounts typically offer 10-20x higher interest rates than traditional savings accounts.