1. What is the Marcus Savings Interest Calculator?

This calculator estimates the interest earned in a Marcus by Goldman Sachs High Yield Online Savings Account, which compounds interest daily. It uses the standard compound interest formula with daily compounding.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.0365 for 3.65%)
• \( t \) — Time period in years
• 365 — Number of compounding periods per year (daily)

Explanation: The formula calculates the total amount including compounded interest, then subtracts the principal to show just the interest earned.

3. Importance of Interest Calculation

Details: Understanding how interest compounds helps savers project earnings and compare different savings options. Daily compounding maximizes returns compared to monthly or annual compounding.

4. Using the Calculator

Tips: Enter principal in dollars, annual rate as decimal (3.65% = 0.0365), and time in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Marcus's current APY?
A: As of 2023, Marcus offers 3.65% APY (0.0365 decimal), but rates may change. Check their website for current rates.

Q2: How often does Marcus compound interest?
A: Marcus compounds interest daily and credits it to your account monthly.

Q3: Is there a minimum balance required?
A: Marcus has no minimum balance requirements to earn the APY.

Q4: Are there any fees?
A: Marcus has no monthly maintenance fees or transfer fees.

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