1. What is a Marcus CD?

Marcus by Goldman Sachs offers high-yield Certificates of Deposit (CDs) with competitive interest rates. CDs are time deposits that typically offer higher returns than regular savings accounts in exchange for locking your money for a set term.

2. How CD Interest Works

The calculator uses the compound interest formula:

Where:

• \( A \) — Future value of investment
• \( P \) — Principal investment amount
• \( r \) — Annual interest rate (decimal)
• \( n \) — Number of times interest is compounded per year
• \( t \) — Time in years

Key Points: Marcus CDs compound interest daily, which helps your money grow faster compared to less frequent compounding.

3. Using This Calculator

Instructions: Enter your initial deposit, select the APY (current rates shown below), choose term length and compounding frequency (daily recommended for Marcus CDs).

4. CD Investment Strategies

Laddering: Consider creating a CD ladder with multiple terms to balance liquidity and yield. This calculator helps project growth for each rung of your ladder.

5. Frequently Asked Questions (FAQ)

Q1: What are current Marcus CD rates?
A: As of 2023, rates range from 3.00% APY for 6-month CDs to 4.20% APY for 5-year terms (rates subject to change).

Q2: Are Marcus CDs FDIC insured?
A: Yes, Marcus CDs are FDIC insured up to $250,000 per depositor.

Q3: What happens if I withdraw early?
A: Early withdrawal typically incurs a penalty of several months' interest.

Q4: How does compounding frequency affect returns?
A: More frequent compounding (daily vs. monthly) yields slightly higher returns, especially for larger balances and longer terms.

Q5: Are CD interest rates fixed?
A: Yes, Marcus offers fixed-rate CDs where the APY remains constant for the entire term.