1. What is the Marcus CD Calculator?

The Marcus CD Calculator helps you estimate the growth of your Certificate of Deposit (CD) investment with Marcus by Goldman Sachs. It uses daily compounding to calculate your final balance based on the principal, interest rate, and term length.

2. How Does the Calculator Work?

The calculator uses the daily compounding formula:

Where:

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

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

3. Understanding CD Growth

Details: Marcus CDs offer fixed interest rates for specific terms. The Rate Bump CD (e.g., 20-month at 3.90% APY) allows one rate increase during the term if rates go up.

4. Using the Calculator

Tips: Enter your initial deposit, the CD's APY (e.g., 3.90 for 3.90%), and the term length. You can enter terms in months or years. Results show final balance and total interest earned.

5. Frequently Asked Questions (FAQ)

Q1: What is Marcus's current CD rate?
A: As of 2023, Marcus offers competitive rates like 3.90% APY for their 20-month Rate Bump CD, but rates change frequently.

Q2: How does daily compounding work?
A: Interest is calculated daily based on your current balance and added to your account monthly.

Q3: Are there penalties for early withdrawal?
A: Yes, Marcus CDs typically have early withdrawal penalties equal to several months' interest.

Q4: What's the minimum deposit for a Marcus CD?
A: Marcus generally requires a $500 minimum to open a CD.

Q5: How does the Rate Bump feature work?
A: For Rate Bump CDs, you can increase your rate once during the term if Marcus offers higher rates for the same CD product.