1. What is the Marcus High Yield Savings Calculator?

This calculator helps you estimate the growth of your savings in a Marcus by Goldman Sachs High Yield Online Savings Account with monthly compounding interest. It uses the standard compound interest formula with monthly compounding periods.

2. How Does the Calculator Work?

The calculator uses the monthly compounding 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, which means interest is calculated on both the initial principal and the accumulated interest from previous periods.

3. Importance of Monthly Compounding

Details: Monthly compounding can significantly increase your savings over time compared to simple interest or annual compounding. Marcus Goldman Sachs offers competitive APYs (Annual Percentage Yields) that compound monthly.

4. Using the Calculator

Tips: Enter your initial deposit amount in dollars, the number of years you plan to save, and the current APY as a decimal (e.g., 0.0365 for 3.65%). The calculator will show your projected balance.

5. Frequently Asked Questions (FAQ)

Q1: What is Marcus by Goldman Sachs?
A: It's an online banking platform offering high-yield savings accounts with competitive interest rates and no fees.

Q2: How often does Marcus compound interest?
A: Marcus compounds interest monthly and credits it to your account at the end of each month.

Q3: What is the current APY for Marcus savings?
A: As of 2023, Marcus offers 3.65% APY (this may change - check their website for current rates).

Q4: Are there any fees or minimum balances?
A: No monthly fees and no minimum deposit requirements to open an account.

Q5: How accurate is this calculator?
A: It provides estimates based on the entered APY remaining constant, which may not reflect actual future rates.