1. What is the High Yield Savings Calculator?

This calculator helps you estimate the growth of your savings in a Marcus Bank high-yield savings account using daily compounding interest. It shows both the final amount and total interest earned over time.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

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

Explanation: The formula accounts for daily compounding (365 times per year), which maximizes your interest earnings compared to simple interest or less frequent compounding.

3. Importance of Compound Interest

Details: Compound interest means you earn interest on both your initial deposit and the accumulated interest. Over time, this creates exponential growth of your savings, especially with higher APY rates like Marcus Bank offers.

4. Using the Calculator

Tips:

• Enter your initial deposit amount in dollars
• Use Marcus Bank's current APY (default is 4.40%)
• Input the number of years you plan to save
• All values must be positive numbers

5. Frequently Asked Questions (FAQ)

Q1: How often does Marcus Bank compound interest?
A: Marcus compounds interest daily and credits it to your account monthly.

Q2: Is the APY rate guaranteed?
A: No, high-yield savings rates can change based on market conditions. Check Marcus Bank for current rates.

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

Q4: How does this compare to regular savings accounts?
A: Marcus's high-yield savings typically offers 10-20x higher interest than traditional bank savings accounts.

Q5: Is my money safe in a Marcus account?
A: Yes, Marcus is part of Goldman Sachs Bank USA, FDIC insured up to $250,000 per depositor.