1. What is the Marcus High Yield Savings Calculator?

This calculator estimates the growth of your savings in a Marcus High Yield Savings Account with monthly compounding interest. It uses the standard compound interest formula adjusted for monthly compounding periods.

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%)
• \( t \) — Time the money is invested for (years)

Explanation: The formula accounts for monthly compounding by dividing the annual rate by 12 and multiplying the time period by 12 compounding periods per year.

3. Importance of Monthly Compounding

Details: Monthly compounding means interest is calculated on both the initial principal and the accumulated interest from previous periods, leading to faster growth compared to simple interest or annual compounding.

4. Using the Calculator

Tips: Enter your initial deposit in dollars, the annual interest rate as a decimal (e.g., 0.0365 for 3.65%), and the number of years you plan to save. 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) on their high-yield savings accounts, but this rate may change.

Q2: How often does Marcus compound interest?
A: Marcus compounds interest daily, but this calculator uses monthly compounding for simplicity and slightly more conservative estimates.

Q3: Are there any fees with Marcus accounts?
A: Marcus has no monthly maintenance fees or minimum balance requirements.

Q4: How accurate is this calculator?
A: It provides close estimates but doesn't account for additional deposits, withdrawals, or rate changes over time.

Q5: Is my money safe in a Marcus account?
A: Marcus accounts are FDIC-insured up to $250,000 per depositor.