1. What is the Marcus CD Interest Calculator?

The Marcus CD Interest Calculator helps you estimate how much interest you can earn on a Certificate of Deposit (CD) from Marcus by Goldman Sachs. As of April 2024, Marcus offers competitive rates like 4.80% APY for their 6-month CD.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (decimal)
• \( n \) — Compounding periods per year
• \( t \) — Term in years

Explanation: The formula accounts for compound interest, where interest is earned on both the principal and accumulated interest.

3. Understanding CD Rates

Details: CD rates are typically fixed for the term length. Marcus CDs compound daily, but you can calculate with different compounding frequencies for comparison.

4. Using the Calculator

Tips: Enter your principal amount, current interest rate (e.g., 4.80 for 4.80% APY), term length in years (0.5 for 6 months), and select compounding frequency.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Marcus CD rate?
A: As of April 2024, Marcus offers 4.80% APY for 6-month CDs. Rates change frequently, so check their website for current offers.

Q2: How does compounding affect my earnings?
A: More frequent compounding (e.g., daily vs. annually) results in slightly higher returns due to the "interest on interest" effect.

Q3: Are CD interest rates guaranteed?
A: Yes, CD rates are fixed for the term length, unlike savings accounts where rates can change.

Q4: What happens when my CD matures?
A: At maturity, you can withdraw funds or roll them into a new CD, possibly at a different rate.

Q5: Are there penalties for early withdrawal?
A: Yes, most CDs charge a penalty (often several months' interest) for withdrawing before maturity.