1. What is the Marcus vs Amex Calculator?

This calculator compares the growth of savings in Marcus by Goldman Sachs (3.65% APY) and American Express (3.60% APY) high-yield savings accounts. It shows the difference in earnings between these two popular savings options.

2. How Does the Calculator Work?

The calculator uses the daily compound interest formula:

Where:

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

Explanation: Interest is compounded daily (365 times per year) at slightly different rates for each bank.

3. Understanding Compound Interest

Details: Daily compounding means interest is calculated on your balance every day, including previously earned interest. Even small rate differences can lead to significant differences over time.

4. Using the Calculator

Tips: Enter your initial deposit, investment period in years, and optional monthly contributions. The calculator will show projected balances for both accounts and the difference between them.

5. Frequently Asked Questions (FAQ)

Q1: Are these current APY rates?
A: Rates change frequently. As of 2023, Marcus offers 3.65% APY and Amex offers 3.60% APY. Check current rates before opening an account.

Q2: Which bank is better?
A: While Marcus currently has a slightly higher rate, both are reputable. Consider other factors like customer service, app features, and transfer times.

Q3: Are there any fees?
A: Neither Marcus nor Amex charge monthly fees for their high-yield savings accounts.

Q4: Is my money safe in these accounts?
A: Both are FDIC-insured up to $250,000 per depositor, per account type.

Q5: How often do rates change?
A: Rates can change monthly based on Federal Reserve policy and market conditions.