High Yield Savings Account Calculator Marcus Interest Rate

Compound Interest Formula:

\[ A = P \times (1 + \frac{r}{365})^{365 \times t} \]

Final Amount (A):

Interest Earned:

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1. What is the Marcus High Yield Savings Account?

The Marcus by Goldman Sachs High Yield Online Savings Account offers competitive interest rates (currently 3.65% APY) with no fees and FDIC insurance up to $250,000. It compounds interest daily for maximum growth potential.

2. How Does the Calculator Work?

The calculator uses the daily compound interest formula:

\[ A = P \times (1 + \frac{r}{365})^{365 \times t} \]

Where:

$ A $ — Final amount
$ P $ — Principal investment amount
$ r $ — Annual interest rate (decimal)
$ t $ — Time the money is invested for (years)

Explanation: Interest is calculated daily (365 times per year) and added to the principal, resulting in "interest on interest" compounding effect.

3. Importance of Compound Interest

Details: Daily compounding maximizes growth potential. At 3.65% APY, $10,000 would grow to $10,371.28 in 1 year, compared to $10,365.00 with annual compounding.

4. Using the Calculator

Tips: Enter principal amount in dollars, time period in years (can use decimals for partial years), and the current Marcus interest rate (defaults to 3.65%).

5. Frequently Asked Questions (FAQ)

Q1: Is the Marcus savings account FDIC insured?
A: Yes, deposits are FDIC insured up to $250,000 per depositor.

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

Q3: Are there any fees with Marcus savings?
A: No monthly maintenance fees or minimum balance requirements.

Q4: How does Marcus compare to traditional banks?
A: Marcus typically offers 10-15x higher interest rates than national average savings accounts.

Q5: Can I withdraw money whenever I need?
A: Yes, though federal regulations limit certain types of withdrawals to 6 per month.