1. What is the Marcus Savings Growth Formula?

The Marcus Savings Growth Formula calculates how your money grows in a high-yield savings account with daily compounding interest. Marcus by Goldman Sachs offers competitive APY (Annual Percentage Yield) rates.

2. How Does the Calculator Work?

The calculator uses the daily compounding formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.0365 for 3.65%)
• \( t \) — Time in years

Explanation: The formula accounts for daily compounding, which means interest is calculated and added to your balance every day.

3. Importance of Compound Interest

Details: Daily compounding allows your money to grow faster than simple interest or less frequent compounding. Over time, even small differences in interest rates can lead to significant differences in your savings.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the current Marcus savings APY?
A: As of 2023, Marcus offers 3.65% APY (0.0365 in decimal form), but rates may change. Check their 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: Are there any fees with Marcus savings accounts?
A: Marcus has no monthly fees or minimum balance requirements.

Q4: Is my money safe in a Marcus account?
A: Yes, Marcus accounts are FDIC insured up to $250,000 per depositor.

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